On the corn front Friday’s USDA Supply/Demand report showed U.S. corn ending stocks were ar 2.167 which was slightly higher than estimates but well below September’s number. Same story for world ending stocks which was a tad higher than estimates but well below September. U.S. production (on billions of bushels) came in at 14.72 with expectations of 14.81 and September coming in at 14.9 while U.S. yields came in at 1.78.4 bushel per acre with estimates at 177.7 (bpa) and September coming in at 178.5 (bpa). With this balance sheet, with bullish numbers for soybeans as well, and no change in South American corn or soybean production or exports while China to buy, this is going to be an interesting 2020/21 year in grains. In the overnight electronic session, the December corn is currently trading at 398 ¾ which is 3 ¾ cents higher. The trading range has been 399 ¼ to 394.
On the ethanol front the WASDE lowers forecasts for 2020/21 use for ethanol. Forecasts for corn production, feed and residual use, and ending stocks were also lowered. Corn used for ethanol is down 50 million bushels, based on weekly ethanol production date as reported by the EIA. There should be more headlines we can sink our teeth into after the Nov. 19 USDA report, which is one week after the U.S. Presidential election. There were no trades posted in the overnight electronic session. The November ethanol settled at 1.400 and is currently showing 1 bid at 1.375 and 1 offer at 1.450 with Open Interest at 71 contracts.
On the crude oil front, the market is feeling the pressure this morning on three fronts. With the Norwegian Oil and Gas Association announcing the end of a strike that derailed 8% of Norways product and threatened to shutter its largest oil field. Success in mediation talks ended the dispute at the heart of the disruption. Also pressuring the market is news Libya will reopen Sharara, its largest oil field while U.S. operations in the Gulf of Mexico also started to return online having been shut thanks to Hurricane Delta. In the overnight electronic session, the November crude oil is currently trading at 3898 which is 62 points lower. The trading range has been 4045 to 3980.
On the natural gas front this market is still doing damage control as Hurricane Delta really hit refineries in Louisiana. As I wrote before not many companies are answering inquiries as the boots on the ground face hazardous conditions and are still very much in harm’s way. We will keep you updated as we receive new and current information. In the overnight electronic session, the November natural gas is currently trading at 2.894 which is 0.153 higher. The trading range has been 2.955 to 2.881
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