U.S. Canada Move To NAFTA Change
Canadian Foreign Minister Chrystia Freeland is in Washington this week to negotiate her country’s new role in the landmark 1994 North American Free Trade Agreement. After he struck a deal with his Mexican counterpart on Monday, President Trump told Canada, the U.S. second largest trading partner, to decide whether it wants to stay in the revised version of the three nation pact. With Canada scrambling to come to a decision this could add further pressure to China importing grains and rumors of a rapid swine flu in the country, which could increase imports from our pork market while Mexico imports large numbers of pork as well. In the overnight electronic session the December Corn is currently trading at 358 ¼, which is 2 cents higher. The trading range has been 358 ½ to 355 ¾. Remember Friday is First Notice Day on September Grains and you don’t want to get caught in a holiday squeeze with the latest Open Interest at 90,878 contracts.
On the Ethanol front the October contract is currently trading at 1.301, which is .004 higher. The trading range has been 1.301 to 1.296. 3 contracts traded and Open Interest is at 1,421 contracts. The market is currently showing 1 bid @ 1.299 and 1 offer @ 1.305.
On the Crude Oil front we had slight builds on the API Energy Report with prognosticators all over the board with huge builds or draws and when the report was released it showed Crude Oil with a build of 38 thousand barrels, Cushing up 33k barrels, Gasoline up 127k barrels and Distillates up 928k barrels. For this time of year the number can be construed as bullish and we will see if the EIA is on the same page later this morning and with 4.2 growth in the GDP is bullish as well. In the overnight electronic session the October Crude Oil is currently trading at 6905, which is 52 points higher. The trading range has been 6914 to 6837.
On the Natural Gas front the September contract expires today. In the overnight electronic session the October contract is currently trading at 2.865 which is 2 cents higher. The trading range has been 2.866 to 2.830.
Have a Great Trading Day!