Next week the Fed decision on interest rates has investors scouring the sidelines with risk of high volatility with a single headline and verbiage from Fed governors.
On the Corn front the market is trading a little higher with the December contract currently last at 332 ¼, which is ½ of a cent higher. The trading range has been 334 ¾ to 331 ½. Rains forecasted for tomorrow and Saturday could add premium to the market as we continue to trade weather and yields.
On the Ethanol front the October traded 2 contracts at 1.507, which is 2 tics higher and is currently posting a spread 1 bid @ 1.499 and 6 offers @ 1.524 while the November contract traded 1 contract at 1.445, which is 2 tics higher as well and the market is posting a spread of 5 bids @ 1.435 and 1 offer @ 1.452. Much of the same news in this commodity as it continues to follow the Corn and Crude Oil lead.
On the Crude Oil front the market is fending off skittish of gluts and lower demand quotes from the International Energy Agency (EIA) and posturing of central banks, Fed and talks about a FREXIT> Yes, France is the latest EU member nation disenchanted with EU politics. In the overnight electronic session the October contract is currently trading at 4397, which is 39 points higher. The trading range has been4405 to 4332.
On the Natural Gas front we have the weekly EIA Gas Storage with injection guesstimates from 19 analysts ranging from 45 bcf to 72 bcf. These numbers are lower than early estimates of 59 bcf to 75 bcf. This compares to last year this week of 96 bcf and the five year average of 83 bcf. These numbers keep me a long term bull. There is a Disturbance in the Gulf of Mexico, which has a low percentage of being ant threat and two Tropical Storms in the Atlantic that pose no threat to the Gulf region. However another Disturbance is gathering strength of the west coast of Africa. In the overnight electronic session the October Natural Gas is currently trading at 2.889, which is unchanged. The trading range has been 2.915 to 2.876.