Let’s Make A Deal
Good Morning!
The weather heading into Thanksgiving is not favorable to harvest. After the weather, trades and deals and exports are key to this market as talks between the two largest economies will determine global trade. Last week’s exports were weak even though we had a surprise volume buyer from Mexico. We will see global carryover diminish sooner or later and see a different fundamental take on this market we have not seen in decades. In the overnight electronic session the December Corn is currently trading at 364 ¼, which is a ½ of a cent lower. The trading range has been 366 ¼ to 364.
On the Ethanol front production is slumping as the market digest’s prices in Crude Oil, Corn and Sugar prices as Brazil is thirsting to be the king of the mountain once again in this commodity and become the major player outdistancing the U.S. market. In the overnight electronic session the December Ethanol is currently trading at 1.258, which is .006 lower. The trading range has been 1.265 to 1.255 with 118 contracts passing hands and Open Interest dropping to 1,467 contracts. The market is currently showing 1 bid @v 1.256 and 1 offer @ 1.272.
On the Crude Oil front we have LAST TRADING DAY on the December contract TODAY. The market is trading in holiday mode and trying to gather its breath after the crushing selloff we have seen in the past few weeks. Although the market is seeking direction it is also trading like a teeter-totter as there is no map on the road. In the overnight electronic session the January Crude Oil is currently trading at 5610 which is 58 points lower. The trading range has been 5755 to 5568. Don’t believe that the Russian’s and Saudi’s will not have a compromise about production cuts. It’s coming and will be a reality shortly.
On the Natural Gas front the market is rolling on light holiday volume and concerns of lower than normal temperatures in the Plains and Mid-West are fueling premium into future prices. In the overnight electronic session the December contract is currently trading at 4.502 which is 23 cents higher. The trading range has been 4.737 to 444.6.
Have a Great Trading Day!