In the overnight electronic session, December corn is currently trading at 394 ¾, which is 1 cent lower. The trading range has been 395 ½ to 394 so far. The market seems to be pricing in better than expected yields which can be confirmed by some of my farmers in the front lines. Weather will be a factor as my customers want to finish harvesting corn and soybeans and concentrate on planting wheat.
On the ethanol front there were no trades posted in the overnight electronic session. The November contract settled at 1.575 and is currently showing 1 bid @ 1.554 and 1 offer @ 1.583.
On the crude oil front the market is trading higher in the overnight electronic session with the November contract currently trading at 4821 which is 40 points higher. The trading range has been 4839 to 4776 so far. After a big divergence in the weekly API and EIA stocks the market broke hard after coming close to $50 a barrel. I do not believe the EIA numbers were accurate and expect a rally tomorrow after the rig-counts.
On the natural gas front the November contract is currently trading at 2.463 which is .011 of a cent lower in the overnight electronic session. The trading range has been 2.483 to 2.452 so far. I still remain long-term bullish. However, in shoulder season, government regulation and a mild winter forecast, which will ease demand. The question is when demand will pick up?