On the Hurricane Front Tropical Storm Zeta storm conditions will continue in portions of the northern Yucatan Peninsula of Mexico this morning. Heavy rainfall is expected across the Yucatan Peninsula, Cayman Islands, and western Cuba which could lead to flash flooding in urban areas. Hurricane conditions and life-threatening storm surge are expected along portions of the norther Gulf coast be late Wednesday with Storm Surge and Hurricane Warnings are in effect. Residents should follow advice given by local officials. The current landfall expectation is Louisiana, Mississippi, and Alabama.
On the corn front strong export demand has been pushing the corn, soybeans, and wheat markets. The market is fixated on Chinese import quotas. Iowa’s corn harvest is 78% done in northeast Iowa while the south-central has over 50% to harvest. Soil moisture conditions improved with recent rains and snow. We could start to see harvest slow down we cold temperatures and a change in weather in the northern Corn Belt. In the overnight electronic session, the December corn is currently trading at 420 ¼ which is 2 ½ cents higher. The trading range has been 421 ¾ to 416.
On the ethanol front Pacific Ethanol (NASDAQ:PEIX) announced a Strategic realignment to focus on specialty alcohol and essential ingredients. As part of that effort the company would sell or repurpose it’s three idle ethanol plants and change its name. CEO Mike Kandris said that with their acquisition of Illinois Corn Processing LLC., “ the transportation fuels are no longer are main focus.” This could be a really big gamechanger in the ethanol industry. There were no trades posted in the overnight electronic session. The November ethanol settled at 1.567 and is currently showing 1 bid at 1.396 with 0 offers and Open Interest at 38 contracts.
On the crude oil front were trading higher in the overnight and may see hurricane premium added to the mix as we also have the API Energy Stocks at 3:30 P.M. This market is experiencing yet another disruption this active hurricane season. In the overnight electronic session, the December crude oil is currently trading at 3880 which is 24 points higher. The trading range has been 3912 to 3856.
On the natural gas front, the November contract expires tomorrow. The market is trading mostly lower. Even though winter like weather and fears of Louisiana refineries waiting on Tropical Storm Zeta which could be upgraded to hurricane status in the next 48 hours. In the overnight electronic session, the December natural gas is currently trading at 3.235 which is .018 higher. The trading range has been 3.262 to 3.215