Monday’s trading session was quite lackluster after the release of the Empire Manufacturing data which showed a contraction and zero expansion which investors were anticipating growth of 1.00. The New York Fed numbers cast a pall on the markets on a light volume Monday and left little passion to investors to seek value and take advantage of swings in the commodities markets. On the corn front, farmers are taking advantage of the warm weather ahead of the rains. And Mother Nature is exaggerating the peaks and valleys in weather as corn harvest is almost half complete. In the overnight electronic session the December corn is currently trading at 354, which is sharply unchanged. The trading range has been 356 to 354 in a tight trading range so far.
On the ethanol front there were no trades posted in the overnight electronic session. The November contract settled at 1.580 and is currently showing 5 bids @ 1.575 and 5 offers @ 1.600. The market is following three fundamental factors with the corn harvest, crude oil prices and the uncertainty in this election that will have repercussions in the EPA’s stance on the failed Go Green Solar Energy policy.
On the crude oil front, the market is up over $50 a barrel ahead of today’s API Energy Stocks weekly inventory. We also have to contend with another Hurricane risk with a Disturbance in the Atlantic located northeast of the Turks and Caicos moving north-northwest which could impact production in the Gulf of Mexico region. We should have a better education of the storm’s path tomorrow and Thursday and disruptions in production to the flow of Energy in the region. In the overnight electronic session the November crude oil is currently trading at 5021 which is 27 points higher. The trading range has been 5052 to 5001.
On the natural gas front yesterday’s selloff created a bulge in the market and today we are doing an about-face in the overnight electronic session where the November contract is currently trading at 3.304, which is 6 cents higher. The trading range has been 3.317 to 3.248 and the market is weathering the storm (no pun intended) as investors and producers brace for the impact of this Disturbance if it reaches the Gulf region and impacts production in this active Hurricane season and weather forecast for a long cold winter with supplies below the five-year average.
Have a Great Trading Day!