Happy All Saints Day!
We start off this Wednesday with Construction Spending and ISM Manufacturing Index at 9:00 A.M., EIA Energy Stocks at 9:30 A.M., Cotton Systems, Dairy Product Sales, Fats and Oils and Grain Crushings at 2:00 P.M. Also the Fed announcement looms at the FOMC meeting. Will they raise rates? Or will Hillary be sent to the Gulag or Leavenworth? Either one works for me.
In the overnight electronic session the December Corn is currently trading at 346 ½ which is ¾ of a cent higher. The trading range has been 346 ¾ to 345 ¼. Talk of higher yields and lower exports which adds up to a pall higher prices with carryover concerns that will trump any rally. When China commits to their Ethanol plan global stocks and carryover will diminish significantly and start the beginning of a major bull market run.
On the Ethanol front the December contract is currently trading at 1.452 which is .016 higher. The trading range has been 1.452 to 1.435. The market is currently showing 3 bids @ 1.428 and 1 offer @ 1.449 with Open Interest at 1,314 contracts.
On the Crude Oil front last night’s bullish API inventory moved the market where I hope and anticipated it would go for some time. The API showed Crude Oil inventories down 5.087 million barrels, while Cushing, Oklahoma showed draws of 253 thousand barrels and the products really boosted the bullish sentiment with Gasoline showing draws of 7.697 million barrels and Distillates down 3.106 million barrels. With the draws in Distillates that is not a good sign for users of Diesel and Jet Fuel. In the overnight electronic session the December Crude Oil is currently trading at 5495 which is 57 points higher. The trading range has been 5522 to 5455.
On the Natural Gas front the market is trying to show some life after the last selloff. Tomorrow's EIA Gas Storage and cold weather will be the only thing to get this market off it’s rocker. In the overnight electronic session the December Natural Gas is currently trading at 2.911 which is 1 ½ of a cent higher. The trading range has been 2.929 to 2.901.