In the overnight electronic session the grains did an about face. With the December corn currently trading at 387, which is 3½ cents lower. The trading range has been 391 to 386½ so far. I believe the soybean yields will drive the complex higher in sympathy as we wade into harvest.
On the ethanol front, the October contract posted a trade at 1.518 which is .001 of a cent higher. The current bid is showing three contracts bid at 1.504 and one offer at 1.533, which shows me doubt about corn and energy prices. I remain bullish.
On the crude oil front, the market is rolling after the weekly API data showed a draw of 3.1 million barrels. This morning we will have the weekly EIA estimates and glaring eyes on the Fed which should lead to an interesting trading session. In the overnight electronic session October crude oil is currently trading at 4528 which is 69 points higher. The trading range has been 4559 to 4482 so far. We will need to buckle up our chin straps today and tomorrow.
On the natural gas front the market is easing back from current rallies with the October contract currently trading at 2.708 which is two cents lower in the overnight electronic session. The trading range has been 2.736 to 2.701 so far. Winter forecast may drive this market shortly.