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Central Banks Groove Commodities

Published 10/27/2016, 12:51 PM
Updated 07/09/2023, 06:31 AM
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Good Morning!

After Brexit and mumblings of a Frexit and other nations threatening to leave the European Union, Deutsche Bank (DE:DBKGn) showed a surprising profit. The bank beat estimates on revenue that surprised many speculators with concerns about restructuring, litigation costs and over regulation inhibit trade. This was a thrilling signal to commodity traders with the fears in this election year climate here at home in this election year investors look at the sign of Fair and Free Trade dissolving maybe exaggerated.

On the corn front the Grain complex was buoyed by harvest rains and the Deutsch Bank news. In the overnight electronic session the December Corn is currently trading at 356 ¾, which is 2 ¾ of a cent higher. The trading range has been 358 ¼ to 353 ¼ so far. Hopefully with these current events will show resurgence in volume.

On the Ethanol front there were no trades posted in the overnight electronic session. The December contract settled at 1.547 and is currently showing 5 bids @ 1.385 and no offers.

On the Crude Oil front the market seems to be watching quotes and the political card from OPEC and non-OPEC nations not to mention central banks that give a much not needed headline that disrupts the market from trading in balance. In the overnight electronic session the December crude oil is currently trading at 4940, which is 22 points higher. The trading range has been 4951 to 4900. The market looks poised to shoot for $50 a barrel in today’s trading session.

On the Natural Gas front as the November contract expires today we also have the weekly EIA Gas Storage at 9:30 A.M. This market is trading is also trading weather and speculators are wondering “when and if” to catch a falling knife, but when Old Man Winter hits expect this market to rally. In the overnight electronic session the December contract is currently trading at 3.076, which is 4 cents higher. The trading range has been 3.092 to 3.030.

Buckle Up!

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