Weather Outside is Frightful
Good Morning!
Hurricane Jose is still making headlines before we see the impact of his punch and hopefully he will miss the U.S. northeastern coast. Jose current movement is north at 8 knots. We also have to contend with Hurricane Maris a category 2 and Tropical Depression Lee, both of which threaten the Gulf of Mexico region and refinery row, which could spike Energy prices in this active hurricane season. The crazy weather continues as we are experiencing higher than normal temperatures in September ahead of officially Autumn on Friday. This could continue as the seasonable harvest pressure could attract more sellers and may have a surprise rally being heavily oversold. In the overnight electronic session the December Corn is currently trading at 352 ¾, which is 2 cents lower. The trading range has been 355 ½ to 352 ¼. With ideal weather conditions forecasted this week and October Grain Options scheduled to expire Friday we could see some fireworks.
On the Ethanol front the October contract posted a trade at 1.553, which is .008 of a cent higher. The market is currently showing 6 bids @ 1.544 and 2 offers @ 1.575 and Open Interest dropping to 584 contracts.
On the Crude Oil front the October contract is currently trading at 4973, which is 16 points lower. The trading range has been 5033 to 4945. The market is seeking new highs and attempting to break out of the current trading range for months and investors are skittish to buy around psychological resistance at $50.
On the Natural Gas front the market is rolling with the October contract currently trading p-at 3.114, which is 9 cents higher. The trading range has been 3.132 to 3.049. Hotter-than-normal temperatures are giving this market gusto.
Have a Great Trading Day!