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Natural Gas Eyes EIA Storage Data

ByDan Flynn
Published 08/17/2017, 09:29 AM
Updated 07/09/2023, 06:31 AM

Rains Make Grains

We kickoff this morning with Export Sales and Initial Jobless Claims at 7:30 A.M. followed with Capacity Utilization, Industrial Production at 8:15 A.M. and EIA Gas Storage at 9:30 A.M. The Grains are trading higher in the overnight electronic session. The complex is getting a bounce after being heavily sold in prior trading sessions. Another factor is a forecasted cool front that could further support this dead cat bounce.

There will be more crop surveys predicting lower yields; however, most investors are banking that the carryover will have the upper hand in any possible explosion of buyers in the marketplace. Another supporting factor is lack of Brazilian and U.S. farmer selling at these price levels. In the overnight electronic session the September Corn is currently trading at 353 ½ which is 1 cent higher. The trading range has been 353 ¾ to 352 ½.

On the Ethanol front there were no trades posted in the overnight electronic session. The September contract settled at 1.5331 and is currently showing 3 bids @ 1.523 and 2 offers at 1.547 with declining Open Interest at 497 contracts. The October contract Open Interest has surged ahead in rollover time to 764 contracts.

On the Crude Oil front the market is down again even after consecutive weeks with huge draws in Stocks. It is just a matter of time when the sleeping giant wakes up and we will near immediately feel the pinch at the pump as we will have a mass exodus of shorts in the market. In the overnight electronic session the September Crude Oil is currently trading at 4656 which is 22 points lower. The trading range has been 4695 to 4652.

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On the Natural Gas front we have the weekly EIA Gas Storage where we are expecting an injection build of 50 billion cubic feet (bcf). The real story investors are keeping a keen eye on is the tracking of 3 Tropical Storms in the Atlantic which 2 of the 3 have been upgraded by the National Hurricane Center and those 2 show a current path directly headed into the Gulf of Mexico. This will create disruptions and the fate of these storms could make a direct hit in the Henry Hun neighborhood. This could spark a rally as we head into the weekend. In the overnight electronic session the September Natural Gas is currently trading at 2.880 which is 1 cent lower. The trading range has been 2.899 to 2.868.

Latest comments

Fake news again by the Flynn twins. At time of his post nothing had been upgraded to a TS and after upgrading Depression 9 last night, NHC track is south of Cuba and aiming at the Yucatan. Total pumper.
Shameless pumping of NG. NOAA NHC still classifying first storm as a tropical depression and remaining two as areas of low pressure. While first has been given high probability of developing into a tropical cyclone, NONE have been upgraded to a Tropical Storm as of 11AM eastern. since that doesn't fit your perma-bullish narrative, feel free to make stuff up that is supportive like there are 3 tropical storms moving to the Gulf. Zero credibility. Actual report below. ---Morning satellite imagery shows that shower activity associated with a low pressure system centered about 550 miles east of the Lesser Antilles has become better organized overnight, and buoy data indicates that the circulation is becoming better defined. Environmental conditions appear generally conducive for development, and a tropical depression could form later today or tonight as the system moves westward at about 15 mph. Regardless of development, locally heavy rainfall and gusty winds are expected to spread across portions of the Lesser Antilles and the eastern Caribbean Sea tonight and Friday, and interests in these areas should monitor the progress of this system. An Air Force Reserve Hurricane Hunter aircraft is scheduled to investigate the disturbance this afternoon. * Formation chance through 48 hours...high...80 percent. * Formation chance through 5 days...high...90 percent. 2. Shower activity associated with a second area of low pressure located about midway between the coast of Africa and the Lesser Antilles has also become a little better organized during the past 24 hours. Continued gradual development of this system is possible during the next couple of days while it moves west-northwestward at 15 to 20 mph, but upper-level winds are expected to become less conducive for tropical cyclone formation when the disturbance moves north of the Leeward Islands this weekend. * Formation chance through 48 hours...medium...50 percent. * Formation chance through 5 days...medium...60 percent.
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