Breaking News
0

Commodities After The Hurricane

By Dan FlynnCommoditiesOct 11, 2018 11:43AM ET
www.investing.com/analysis/commodities-after-the-hurricane-200348058
Commodities After The Hurricane
By Dan Flynn   |  Oct 11, 2018 11:43AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Good Morning!

We kickoff the day with CPI, Jobless Claims and Real Earnings at 7:30 A.M., EIA Gas Storage at 9:30 A.M., EIA Energy Stocks at 10:00 A.M., Crop Production USDA Supply/Demand at 11:00 A.m. and Dairy Product Sales at 2:00 P.M. After Hurricane Michael made landfall it was a tremendous jolt to the people in his path and the global markets traded like they were in harm’s way. After yesterday’s action I believe the only thing we need to fear is fear itself. Granted the markets went into panic mode and there was some technical damage but I believe whatever reason and there were many that investors claimed to be the culprit that brought the market down some investors are missing the big picture. There may be a continuation with margin calls being met and we see an influx of new buyers to the table and this could be a great buying opportunity.

On the Corn front rains has slowed harvest and with weak cash basis farmers are holding back from selling at these levels and storage concerns are in investors’ minds. We have the monthly Crop Production USDA Supply/Demand data today. Will this report shed any light on where we go from here? I am guessing with the change in weather temperatures, I am concerned about frosts that could hurt the late plantings after it was 80 degrees two days ago. We also have the Mighty Mississippi at flood stage which is closing some locks to traffic while Iowa recorded its 3rd wettest September on record. In the overnight electronic session the December Corn is currently trading at 361 ½, which is 1 ¼ of a cent lower. The trading range has been 362 ¼ to 360 ¾.

On the Ethanol front now the reality of lifting the ban on gasoline blended with 15% Ethanol also known as E-15 the White House tried to appease rivaling parties in the Corn and Oil industries. The map is simple while trying to boost Ethanol demand and cutting compliance cost for refiners, or we can use that dirty word regulations. In the overnight electronic session the November Ethanol is currently trading at 1.301, which is .019 lower. The trading range has been 1.317 to 1.301 with 16 contracts traded. The market is currently showing 1 bid @ 1,305 and 1 offer @ 1.309 with Open Interest at 1,524 contracts.

On the Crude Oil front the market looks to be in a buy zone after Hurricane Michael is churning up the East Coast and North Carolina is still reconstructing from Hurricane Florence. So we can see several states in the path of this monster will need Energy to pave the way back to normality. Last night’s API showed jaw-dropping builds in Oil of 9.75 million barrels of Oil that made me blush. I never saw it coming and today at 10:00 A.M we have the EIA Energy Stocks and my question is, “will the EIA data come close to matching the API data”? In the overnight electronic session the November Crude Oil is currently trading at 7215, which is 102 points lower. The trading range has been 7276 to 7163.

On the Natural Gas front the market broke the streak of trading sharply higher after the selloff in yesterday’s trading session. We have the EIA Gas Storage at 9:30 A.M and the Thomson Reuters weekly poll with 20 analysts participating expect injection builds anywhere from 86 bcf to 96 bcf with the median build of 91 bcf. This compares to the one-year injection build of 55 bcf and the five-year average Injection build of 79 bcf. In the overnight electronic session the November Natural Gas is currently trading at 3.214, which is 7 cents lower. The trading range has been 3.287 to 3.195.

Have a Great Trading Day

Commodities After The Hurricane
 

Related Articles

Commodities After The Hurricane

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email