Happy Hanukkah
Good Morning!
Busy Day ahead with CPI and Real Earnings at 7:30 A.M., EIA Energy Stocks at 9:30 A.M., Janet Yellen last Fed Meeting with decision of raising Interest Rates and how much? We also have Dairy Product Sales at 2:00 P.M. Reuters News reported yesterday that the White House will host talks between the rival Oil and Ethanol industries today in hopes of brokering a deal to help refiners struggling to meet the country’s biofuel policy. One source familiar with the matter said the meeting would likely focus on short-term fixes to help oil refiners on the U.S. East Coast who say they are struggling with the cost of meeting the Renewable Fuel Standard (RFS) requirements. The industry has requested tweaks to the policy in the past that would cut the annual targets for biofuels; allow Ethanol exports to be counted against those targets, or a shift in blending burden to supply terminals from the refineries. But the Trump administration has ruled in favor of Big Corn and against the refining industry in a series of decisions this year. On the Grain front all December contracts go off the board tomorrow so it would behoove traders with a position to roll or liquidate before the last minute to avoid any type of a squeeze play.
On the Corn front the March contract is currently trading at 348 ½, which is ¾ of a cent higher. The trading range has been 349 ¼ to 347 ¾. Yesterday’s report showed less Corn that was previously thought or reported, however, it should not be enough to start a shock rally. Before you know it we will be talking about plantings and not just weather in South America.
On the Ethanol front there were no trades posted in the overnight electronic session. The January contract settled at 1.295 and is currently showing 2 bids @ 1.293 and 2 offers @ 1.301 with Open Interest at 1,415 contracts.
On the Crude Oil front last night’s API data showed draws in Crude Oil of 7.382 million barrels, Builds in Gasoline stocks of 2.334 million barrels, Distillates had builds of 1.538 million barrels while Cushing, Oklahoma showed draws of 2.704 million barrels. Investors are still hard pressed to believe the past two weeks reports and maybe these numbers are more in line. However it is time to roll up your sleeves because with Roy Moore losing last night’s election, they will try and get it done before year end. Also, the effect on the U.S. dollar and Stock Market after today’s Fed decision. In the overnight electronic session the January Crude Oil is currently trading at 5754 which is 45 points higher. The trading range has been 5772 to 5740.
On the Natural Gas front supplies are overwhelming the cold weather bullish news with producers running out of storage. The January contract is currently trading at 2.723, which is 4 ½ cents higher. The trading range has been 2.730 to 2.684.
Have a Great Trading Day!