Gas Storage Expected Injection 72 BCF
Short-term weather is giving bearish signals to the Natural Gas market but we could expect a reversal when more seasonable temperatures hit us as we head out of shoulder season. The Reuters poll of 21 analysts in this sector has estimates of builds in the injection number ranging from 70 bcf to 77 bcf. These numbers compare to last week injection number of 79 bcf and 87 bcf last year and the five-year average of 84 bcf. In the overnight electronic session the November contract is currently trading at 3.190 which are 2 cents higher. The trading range has been 3.201 to 3.166. Beware of this market in the downward pressure as it is poised to pop in a big way.
On the Corn front we have Export Sales this morning that may rekindle passion in this market as harvest winds down. In the overnight electronic session the December Corn is currently trading at 358 ½, which is 1 cent higher. The trading range has been 359 to 357 ¼. Investors are anticipating another pop in the market that will pick up farmers activity in the cash market and create another sellers’ market.
On the Ethanol front there were no trades posted in the overnight electronic session. The November contract settled at 1.595 and is currently showing 2 bids @ 1.565 and no offers in this extremely thin market.
On the Crude Oil front the November contract expires today so liquidate or rollover Beethoven. Even though the market is lower in the overnight electronic session, the die has been cast with the Saudi Oil minister declaring the oil market is “at the end of a considerable downturn”. And with Oil above $50 a barrel the Saudi’s launched a massive bond sale. Which tells me of further investments ahead and the price is right in Crude and they must invest to have their piece of the exporting pie. In the overnight electronic session the December Crude Oil is currently trading at 5100, which is 82 points lower. The trading range has been 5183 to 5094. I would encourage buying breaks in this market.