Weather And Harvest Mount The Marketplace
Good Morning!
We start off the week with Export Inspections at 10:00 A.M. and Crop Progress at 3:00 P.M. while watching the weather beginning harvest season. As we continue to contends with an active hurricane season in the Atlantic, which is playing havoc with crazy weather conditions Mother Nature has been tossing our way, which the Farmer’s Almanac is predicting a brutal winter, which could jumpstart Grain prices in the future. In the overnight electronic session, the December Corn is currently trading at 352, which is 1 ¼ of a cent lower. The trading range has been 353 ¼ to 351 ¼. Weather will be a huge factor from here on out.
On the Ethanol front there were no trades posted in the overnight electronic session. The October contract Open Interest is down to 210 contracts so we will shift our focus to the November contract, which settled Friday at 1.488 and is currently showing 1 bid @ 1.482 and 2 offers @ 1.498 with Open Interest at 789 contracts.
On the Crude Oil front bearish headlines keeping prices down for now and a futile OPEC meeting that most of the nation’s oil ministers telling us the market is getting back in balance. Do we wait for shale producers or prices to rise so it will be worth their wild. If weather forecasters are correct we will see shortages in Home Home Heating Oil this winter with the destructive force of the hurricanes. In the overnight electronic session the November Crude Oil is currently trading at 5131, which is 65 points higher. The trading range has been 5139 to 5039. If we close above $52 a barrel and tomorrow's API data shows another bullish signal, the gloves are off.
On the Natural Gas front we should expect a rally here as well exports on the rise and weather which should fuel prices. (no pun intended). In the overnight electronic session the October contract is currently trading at 2.949, which is 1 cent lower. The trading range has been 2.986 to 2.927.
Have a Great Trading Day!