Mischief in Debates on the Political Front
Good Morning!
I’m sorry I missed last nights debates… No I am not sorry… Did not miss a thing! We started the day with MBA Mortgage Applications at 0>5% versus the previous of 5.4%, the 30-Year Mortgage Rate came in at 3.92% versus the previous 3.9%. Retail Sales did not come in as great as expected but overall was not damning. At 8:00 A.M. we have the FED Evans Speech. Followed by Business Inventories and Housing Market Index at 9:00 A.M., Monthly Budget Statement and Beige Book at 1:00 P.M. FED Brainerd Speech at 2:00 P.M., Overall Net Capital Flows, Foreign Bond Investment and Net Long-Term Tic Flows at 3:00 P.M. and the much awaited API Energy Stocks at 3:30 P.M. On the corn front, Crop Progress showed Corn harvest 24% complete. With the weather we have realized that number looks good. However, with lighter than normal acreage and lack of a bumper crop that number is merely nothing more than a mirage. This crop will be dismal compared to any crop even compared to the Genetically Modified era. In the overnight electronic the December Corn is currently trading 390 ½, which is 2 ¾ cents lower. The trading range has been 392 to 389 ¼. The changing weather forecast of below normal temperatures to average temperatures will have an impact on this crop further, not to mention the changing of the guard in trade agreements.
On the Ethanol front, the Environmental Protection Agency (EPA) released its plan to change the Renewable Fuel Standard (RFS) regarding small refinery exemptions. However, the biofuels proponents don’t approve of the changes. Another consideration with the unsigned U.S.-China trade agreement is China threatening the U.S. Ethanol market as well as the Cotton and Soybean market, which has put fear in the marketplace. The November contract is currently trading at 1.433, which is .002 higher. The trading range has been 1.460 to 1.425.
On the Crude Oil front, whisper numbers are expecting a huge build in Crude Oil stocks but are also anticipating Products will be lagging way behind. That does not bode well for Diesel and Jet Fuel, which at the end of this chapter will be wildly bullish to the entire Energy Complex. In the overnight electronic session the November Crude Oil is currently trading at 5306, which is 25 points higher. The trading range has been 5324 to 5251.
On the Natural Gas front, the dip in temperatures is keeping the bears at bay and we are seeing short-covering and/or reversals in market psychology. In the overnight electronic session the November Natural Gas is currently trading at 2.374 which is 3 ½ cents higher. The trading range has been 2.379 to 2.333.
Buckle Up Your Chinstraps Energy & Grain Traders!