The API weekly inventories reported crude supplies had risen at 9.3 million barrels. These astonishing numbers do not really add up with rig counts and production crumbling before our eyes. This morning all eyes will be focused on the EIA Energy Stocks data which will be released at 10 A.M. due to Monday’s holiday. This report will be on everybody’s radar screen. In the overnight electronic session the November crude oil is trading at 4606 which is 58 points lower at this writing. The trading range has been 4661 to 4583 so far. The bulls and bears continue to pound each other over demand destruction or production destruction. I remain a bull in this arena.
On the corn front the entire grain complex is trading easier in the overnight electronic session. The December corn is currently trading at 376 ¾ which is 2 ¼ cents lower. The trading range has been 379 ½ to 376 ¾ so far. We could see further sell-off pressure in today’s trading session as harvest is moving right along. In the long-term I remain bullish.
On the ethanol front in the overnight electronic session the November contract posted a trade at 1.512 which is .012 of a cent lower. We could see some wild swings in this market if the EIA refutes the API data.
On the natural gas front the November contract is currently trading at 2.538 which is 2 cents higher in the overnight electronic session. The trading range has been 2.545 to 2.516 so far. We could see a weather jolt as below freezing weather is expected in the early hours this weekend. I do expect continued choppy trade from here.
Have a Great Trading Day!