Good Morning!
Yesterday’s Crop Production USDA Supply/Demand reports painted a negative picture and the Grain complex sold off large. In the overnight electronic session the complex found some buoyancy in the overnight electronic session with the January Soybeans trading 19 cents higher and the December Corn is currently trading at 344 ¾, which is 4 cents higher. The trading range has been 346 ½ to 341 ½. The market may look to exports to a resurgent rally while getting no help from a higher U.S. dollar. This morning’s reports are the weekly Export Sales and Initial Jobless Claims at 7:30 A.M. and the EIA Gas Storage at 9:30 A.M.
On the Ethanol front there were no trades posted in the overnight electronic session. The December contract settled at 1.518 and is currently showing a wide spread of 5 bids @ 1.495 and 5 offers @ 1.545. We should be hearing more buzz from the Environmental Protection Agency (EPA) pushing the Renewable Fuel Standard (RFS) mandate to put more Ethanol in our gas tanks in the coming weeks now that the election is over.
On the Crude Oil front the market is making waves trying to stay above $45 a barrel and pushing to $50 a barrel. After the weekly inventories we wait for the next quote from OPEC as the cartel members of 14 cannot sustain profitable revenues at these levels as Oil is their main source of Gross Domestic Product (GDP). In the overnight electronic session the December Crude Oil is currently trading at 4490, which is 37 points lower. The trading range has been 4564 to 4484.
On the Natural Gas front we are contending with weather that is keeping supplies fruitful for the moment. After quick cold front jolt we are supposed to go back to more unseasonably warm weather which could leave little wiggle room for more storage as we are at record highs in storage for this time of year. This morning’s weekly EIA Gas Storage is due out at 9:30 A.M. and a poll of 19 analyst forecasting injection numbers ranging from 45 bcf to 65 bcf with the average of 52-53 bcf. This compares to last year of 26 bcf and the five-year average of 3 bcf. In the overnight electronic session the December Natural Gas is currently trading at 2.655 which is 3 ½ cents lower. The trading range has been 2.728 to 2.630.
Have a Great Trading Day!