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Commodities And The Fed's Decision

Published 09/26/2018, 12:43 PM
Updated 07/09/2023, 06:31 AM
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Good Morning!

Consumer Confidence is rocking, Jobless Claims are at a 50-year low, and the Stock market is rolling. And today we have the Fed decision on interest rates and most investors expect a hike of a ¼ as we look ahead to tomorrow’s 2nd Quarter GDP. This morning we have New Home Sales at 9:00 A.M., EIA Energy Stocks at 9:30 A.M., FED announcement at 1:00 P.M. and Dairy Product Sales at 2:00 P.M.

On the Corn front we are seeing movement with exports. The market is looking ahead to Friday’s Grain Stocks and Small Grain Summery and of course tomorrow’s Export Sales. In the overnight electronic session the December Corn is currently trading at 363, which is ¾ of a cent lower. The trading range has been 364 ¼ to 362 ¾.

On the Ethanol front investors are expecting a change in the Ethanol policy shortly and are positioning for a move. We see the October contact liquidating as it closes in on expiration and the November contracts Open Interest is growing to 1,678 contracts. In the overnight electronic session the November contract is currently trading at 1.287, which is .001 lower. The trading range has been 1.380 to 1.287 with 31 contracts traded. The market is currently showing 3 bids @ 1.290 and 1 offer @ 1.299.

On the Crude Oil front the market sold off after President Trump’s speech at the U.N. and we have some follow-through this morning ahead of the EIA Energy Stocks data at 9:30 A.M. Last night’s API Energy Stocks was slightly bearish on Crude but had bullish overtones to Products. In the overnight electronic session the November Crude Oil is currently trading at 7178, which is 50 points lower. The trading range has been 7238 to 7171.

On the Natural Gas front the October contract expires today and we have the EIA Gas Storage tomorrow. In the overnight electronic session the November contract is currently trading at 3.043, which is 1 ½ of a cent lower. The trading range has been 3.051 to 3.028.

Have a Great Trading Day!

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