Good Morning!
We knew it was coming and it is on the way. It may perk grain prices as traders are not active with current price levels. In the overnight electronic session the December corn is currently trading at 363, which is 1 ¼ cent higher. The trading range has been 363 ¼ to 360 ¼. The dollar is trading lower in the overnight and the impact of the winter storm is the buzz in the grain complex for now.
On the Ethanol front there were no trades posted in the overnight electronic session. The December contract settled at 1.448 and is currently showing 7 bids @ 1.442 and 2 offers @ 1.454. The question is with large supplies on hand; will this open the door to exports?
On the crude oil front the December contract expires today so our basis shifts to the January contract, which is currently trading at 4134, which is 61 points lower in the overnight electronic session. The trading range has been 4237 to 4125 so far. I still see this complex plagued by huge production cuts and the war in Syria moving across Europe and the Middle East has the Saudi’s attempting to stockpile in war armaments and they have few suitors to buy dependable technological chess pieces to be paid in oil. Cash will be king at the moment. Pandora’s Box has been opened and when demand peaks, worldwide production will have a heck of a time meeting those demands. With the current geo-political risk to ensue, oil is once again Black Gold.
On the natural gas front the weather has not really gotten the attention of traders or producers yet. In the overnight electronic session the December contract is currently trading at 2.334 which is .013 of a cent lower. The trading range has been 2.344 to 2.320 so far. At 9:30 A.M we have the EIA Gas Storage number.
Other reports at 7:30 Export Sales and Initial Jobless Claims also Milk Production later this afternoon.
Have a Great Trading Day!