Good Morning!
Today’s reports are Advanced Durable Goods, Export Sales and Jobless Claims at 7:30 A.M. and EIA Gas Storage at 9:30 A.M. Willa once a Category 5 hurricane is moving slower and dropping excessive rains which will cause life-threatening flash floods and mudslides in Mexico and further predictions of remnants from Willa will cross the Gulf of Mexico and dump heavy rains on parts of Texas and southeast already hit hard with the merge of a cold front to form a powerful nor’easter that will hug the Eastern Seaboard from Virginia to New England. Reported by Meteorologist Jeff Berardelli, a CBS News Weather Contributor. On the Corn front we had slipping Export Sales and weather in the coming days will not be conducive to harvesting. Farmers I have spoken to have told me the crops are green but yields will be lower than previously expected but should not put a dent in the bumper crop. In the overnight electronic session the December Corn is currently trading at 366 ¼, which is 2 cents lower. The trading range has been 368 ¼ to 366 ¼.
On the Ethanol front the November contract posted a trade at 1.271, which is .006 lower with 5 contracts traded in this liquidating market moving closer to expiration. The market is currently showing 5 bids @ 1.260 and 1 offer @ 1.271 with Open Interest at 349 contracts. The December contract is idle settling at 1.293 and currently showing 6 bids @ 1.276 and 1 offer @ 1.288 with growing Open Interest at 1,893 contracts.
On the Crude Oil front the market may be starting to shrug off the prognosticators call for a global economic slowdown. With winter temperatures approaching and supplies already tight and when you throw in the Iran sanctions will come into full effect next Thursday, we could see the beginning of another super cycle. In the overnight electronic session the December Crude Oil is currently trading at 6707, which is 25 points higher. The trading range has been 6732 to 6599.
On the Natural Gas front we have the weekly EIA Energy Stocks and cold weather is putting a spike to the upside early. The Thomson Reuters weekly poll with 19 analysts participating expect injection builds anywhere from 33 bcf to 55bcf with median build of 51 bcf. This compares to the one-year build of 65 bcf and the five-year average of 62 bcf. In the overnight electronic session the December Natural Gas is currently trading at 3.211, which is 4 ½ cents higher. The trading range has been 3.216 to 3.169.
Have a Great Trading Day!