Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Corn And Ethanol: Active Hurricane Season Continues

Published 10/05/2020, 10:01 AM
Updated 07/09/2023, 06:31 AM
CL
-
NG
-
ZC
-
USO
-
1ZEc1
-
On the Hurricane Front as of Sunday 4:00 P.M. C.D.T. Tropical Storm Gamma is somewhat stationary over the Yucatan Peninsula with sustained winds at 50 knots. This could turn out to be more dangerous churning in the Gulf. And another storm we need to watch which has a potential to form a Tropical Cyclone, 26mis located south of Cuba and mobbing west-northwest at 9 knots.
 
On the Corn front the market is holding a mostly steady pattern with harvest expected to show rapid progress. Fears of the early frost are no longer with temperatures forecasted to rebound back into the 70’s this week. Funds added to their net long positions expecting China to be stepping back and in for more purchases. Argentina and Brazil do not have the foreign reserves to be a major exporter currently. In the overnight electronic session, the December corn is currently trading at 379 ½ which is a ¼ of a cent lower. The trading range has been 382 ¼ to 378 ¼.
 
On the Ethanol front it is Last Trading Day for the October contract. The ethanol industry which is aware of the decline in U.S. fracking which made the U.S. an exporting superpower, and the difficulties in their industry, know that ethanol is here to stay. There were no trades posted in the overnight electronic session. The November ethanol settled at 1.360 and is currently showing 2 bids at 1.333 and 1 offer at 1.390 with Open Interest at 69 contracts.
 
On the Crude Oil front more risk on fears in the market with the two storms moving to the Gulf of Mexico and could pack a punch. Another sad headline was that Venezuela is a long way and maybe never be the exporter of oil it once was. Foreign investors are sheepish investing because of the upheaval in the once richest country in the southern hemisphere to a poor country that started at the reigns of Socialist dictator Hugo Chavez. In the overnight electronic session, the November crude oil is currently trading at 3871 which is 166 points higher. The trading range has been 3881 to 3700.
 
On the Natural Gas front the market is rallying on the risk on the crude oil market is with the fears to the Gulf region, but also a natural gas pipeline explosion in Trinity River, Texas, There were residential evacuations but the word on the street is that it is under control. In the overnight electronic session, the November natural gas is currently trading at 2.521 which is .093 higher. The trading range has been 2.546 to 2.446.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.