Good Morning!
The Grain market is looking for a rally. Our last Crop Progress report for the 2017 growing season showed Farmers will need a little help to move prices higher as these prices are way too cheap. Elevators and Silo’s full and plenty of carryover, which should be burned into Ethanol and exported. In the overnight electronic session the December Corn is currently trading at 337 ¾, which is 1 cent lower. The trading range has been 339 ½ to 336 ½. In the long-term this market will seek higher highs but in the near-term the market is exposed in a conundrum of buying value and will keep investors and traders treading water.
On the Ethanol front there were no trades posted in the overnight electronic session. Even while Ethanol output is at all-time highs as we look to export more and more too emerging markets that cannot quench their thirst for product. The December contract settled at 1.384 and is currently showing 2 bids @ 1.370 and 3 offers @ 1.381 with declining Open Interest at 406 contracts.
On the Crude Oil front the fundamentals are the rage. With the Keystone Pipeline, mounting traction should add to market volatility with OPEC expected to extend production cuts and this market will rally with this news. In the overnight electronic session the December Crude Oil is currently trading at 5788 which is 23 points lower. The trading range has been 5797 to 5742.
On the Natural Gas front the market is rolling again with the post-Thanksgiving rally, which is pricing in cold weather that has yet to be forecasted. The December Natural Gas goes off the board today so we will shift are focus to the January contract which is currently trading at 3.092, which is 7 ½ cents higher. The trading range has been 3.096 to 3.028.
Have a Great Trading Day!