Gordon Strength Weakened
Good Morning,
This morning we kickoff the day with U.S. Trade Balance at 7:30 A.M., Dairy Products at 2:00 P.M. and API Energy Stocks at 3:30 P.M. Tropical Depression Gordon is spreading rain after making land fall along the Mississippi Gulf Coast. Flooding is possible Thursday from Florida panhandle through Arkansas Thursday and Friday, Missouri on Saturday and entering Illinois on Sunday, which also threatens Indians, Michigan and Wisconsin and could rain on the Bears-Packers game Sunday night at Lambeau Field in Green Bay. On the Corn front the USDA Crop Conditions for Corn and Soybeans remained unchanged from last week despite heavy rains that soaked the western Mid-West in recent days, according to a Reuter’s poll on Tuesday. More heavy rains are expected this weekend and temperatures are expected to see highs in the 60s and 70s in the coming days. In the overnight electronic session, the December Corn is currently trading at 367, which is 1 ¼ of a cent lower. The trading range has been 369 ¾ to 366 ½.
On the Ethanol front the October contract is currently trading at 1.325, which is .002 higher. The trading range has been 1.325 to 1.322. 4 contracts traded and the market is currently showing 1 bid @ 1.319 and 1 offer @ 1.324 with Open Interest at 1,460 contracts.
On the Crude Oil front, Gordon’s did not pack the punch that was expected but was still strong enough with heaving rains to kill a child in Florida. Refinery Row so far did not receive a direct body blow and the Crude Oil market is trading in risk-off mode for the moment. We should still see disruptions in the flow of Oil and further access the damage to shipping and possible flooding. Tonight we have the API Energy Stocks at 3:30 P.M. In the overnight electronic session the October Crude Oil is currently trading at 6898, which is 89 cents lower. The trading range has been 6957 to 6857.
On the Natural Gas front the market is trading a tad higher with the October contract currently trading at 2.833, which is 1 cent higher. The trading range has been 2.843 to 2.807. We could see the bears try to take control if temperatures break.
Have a Great Trading Day!