Good Morning!
In the overnight electronic session, the December corn is currently trading at 390 ½, which is 1 ½ cents higher. The trading range has been 391 ¼ to 388 ¼ so far. The trading range has been 391 ¼ to 388 ¼ so far. The Brazilian real is trading sharply higher again and is driving prices in the Grain complex along with coffee and sugar prices. Also today at 11:00 A.M. we will have Grain Stocks and Small Grain Summary, which may not paint the entire picture of how bad yields could be until we get further into harvest. I have my ear to the farmers in the field telling me what we can expect.
On the Ethanol front there were no trades posted in the overnight electronic session. The October contract settled at 1.522 and is currently showing 2 bids @ 1.513 and 2 offers @ 1.550.
On the crude oil front the API showed a build of 4 million plus barrels in the weekly stocks but the supportive factor that kept the market from a free fall was Cushing Oklahoma stocks, which were bullish as layoffs continue in the production side with Chesapeake Energy (NYSE:CHK) slashing 15 % of its workforce, which indicates higher prices in the future as production levels decrease -- when demand outweighs supply look out! In the overnight electronic session the November crude oil is currently trading at 4495, which is 28 points lower at this writing. The trading range has been 4519 to 4468 so far. This morning's EIA Energy Stocks could tell the tale if we see a bottom, especially with the Unemployment number Friday and multi reports tomorrow.
In the overnight electronic session the November natural gas is currently trading at 2.563, which are .023 cents lower. The trading range has been 2.611 to 2.554 so far. We may see support with Hurricane Joaquin moving toward the Gulf of Mexico, which could threaten the Henry Hub Refinery. The last projection has Joaquin moving up the Eastern Seaboard but you must remember how unpredictable these storms can be. There is another disturbance behind Joaquin but it does not appear to be close to a threat to the Gulf region.
Have a Great Trading Day!