Good Morning!
Tomorrow's Crop Production USDA Supply/Demand has analyst expecting modest twists in the size of Corn and Soybean crops. The expectation is a drop of 16 million of U.S. Corn output to 15.041 equaling a 0.2 bushel drop to the yield. Soybeans are expected to have a slight improvement on those numbers. In the overnight electronic session the December Corn is currently trading at 347, which is ¾ of a cent higher. The treading range has been 348 ½ to 345.
On the Ethanol front there were no trades posted in the overnight electronic session. The market may be gathering Corn harvest data while watching the wild Energy ride before today’s election. The December contract settled at 1.553 and is currently showing 1 bid @ 1.387 and 1 offer @ 1.571.
On the Crude Oil front the market is trading achy–breaky volatility ahead of the November 30 OPEC meeting. Tonight’s API number could possibly put another bearish spin in the market forcing OPEC to comment that $40 a barrel is unacceptable and will not work for them. In the overnight electronic session the December contract is currently trading at 4465, which is 24 points lower. The trading range has been 4526 to 4456.
On the Natural Gas front we have a sizeable selloff after yesterday’s rally. I believe there is a three-fold reason the market is taking such a beating this morning. Cushing, Oklahoma pipelines did not see damage from the earthquake that investors had feared. Investors are keen on the changing weather reports of more unseasonable warm weather being forecasted even further and finally with all the warm weather we are running at full capacity. In the overnight electronic session the December Natural Gas is currently trading at 2.686, which is 13 cents lower. The trading range has been 2.856 to 2.671.
Have a Great Trading Day!