Good Morning!
The USDA weekly crop progress showed Soybean harvest 91% complete and Corn harvest 70% complete. Certain farmers in varying Mid-West States in varying areas told me they were below the National average. And weather forecasts are predicting a frost Wednesday night heading into Thursday when the monthly release of Crop Production USDA Supply/Demand data. Traders are wondering if we will see any surprises in the numbers in yields, however, previous reports released show a favorable good to excellent rating. In the overnight electronic session the December Corn is trading on light volume and is currently last at 347, which is 1 cent lower. The trading range has been 348 to 347.
On the Ethanol front there were no trades posted in the overnight electronic session. The December contract settled at 1.480 and is currently showing 1 bid @ 1.476 and 1 offer @ 1.484 with Open Interest at 1,413 contracts.
On the Crude Oil front after all the drama with all of the arrests yesterday in Saudi Arabia, the firing of a ballistic missile from Yemen’s Houthis at Riyadh and was intercepted over the capital a few days ago. This has only heightened tensions between the Iran-Yemen versus Saudi Arabia proxy war. Saudi State-T.V. al-Ebariya was quoted, firing the ballistic missile at Riyadh, “threatens the security of the Kingdom and regional and international security. The Sadi State-T.V. further went on, This is a hostile act by the Houthis and proves that one of the terrorism-supporting countries in the region support the Houthis”, the statement said. After the recent breakout and big gains the Crude Oil market seems to be taking this news in stride. At 3:30 P.M. we have the weekly API data where whisper numbers are heard of another large draw adding to the heightened geo-political risk. In the overnight electronic session the December Corn is currently trading at 5726, which is 9 points lower. The trading range has been 5769 to 5713.
On the Natural Gas front the December contract is currently trading at 3.124, which is 1 cent lower. The trading range has been 3.148 to 3.094. Investors are concerned that we may have another selloff after big gains. If the weather forecasts are correct we could see a big move if we have a cold winter.
Have a Great Trading Day!