Good Morning!
Central banks, government regulations and free trade are the epitome of a Freudian Slip if said in one sentence. Government regulations and taxes burdening farmers of what they plant and how much they grow has the government dictating how they disperse what they grew. This is another extension of too much government meddling and not letting Free Markets seek their own level and what disaster they can conjure up next and cast further doubt on the horizon.
Today all September Grains Expire.
In the overnight electronic session the December corn is currently trading at 330 ¾, which is ¾ of a cent higher. The trading range has been 331 ¾ to 329 ¼. Weather remains a huge factor as we head further into harvest when we worry about forecasts of frosts and Indian Summer. After Monday’s USDA data we are all talking about yields and exports.
On the Ethanol front very quiet again with no volume again last night. The October contract has an Estimated Volume of 0 and Open Interest of 1,280 contracts. That tells me to be wary. The contract settled at 1.505 and is showing 1 bid @ 1.504 and 1 offer @ 1.508.
On the Crude Oil front, last night’s API data was bullish versus the consensus of what prognosticators were predicting. Much lower builds attempted to trump the International Energy Agency (EIA) prediction that demand will slowdown and the oil glut will remain regardless of an OPEC-Non-OPEC agreement. We still have Tropical Disturbances that have investors concerned about pipelines and shipping in the strategic hub of the Houston Shipping Channel to the Henry Hub. In the overnight electronic session the October Crude Oil is currently trading at 4490 which is unchanged. The trading range has been 4533 to 4487. This market is still feeling the effects of the IEA Fed and central banks whimsical predictions on our future.
On the Natural Gas front the squeeze is still on as the October contract is edging so close to $3. Weather will continue to be a factor as the government go green policies and regulations put coal plants out of business, which is besides nuclear power the only viable substitute to keep the power grid going as we heat our homes this winter with demand at a premium. We do also have to watch the active Tropical events in the Atlantic as well. In the overnight electronic session the October Natural Gas is currently trading at 2.974 which is 6 ½ cents higher. The trading range has been 2.978 to 2.889. After yesterday’s drama with no defined cause and effect and we weathered the storm it is time to lace em’ up and play.