Harvey More Devastating than Katrina?
Good Morning!
Tropical Storm Harvey could threaten refineries in Galveston, Texas and Louisiana that have 4 refineries alone in Lake Charles, Louisiana and a total of 18 in the state. Flooding is a severe risk so we will monitor the events of Harvey moving back into the Gulf of Mexico moving east-northeast at 3 knots which is a bad sign for Louisiana and the National Hurricane Center cone of Harvey’s movement directly through the state Wednesday and Thursday and hitting Arkansas, Mississippi, and Alabama on Friday. In the overnight electronic session the October Crude Oil is currently trading at 4661, which is 4 tics higher. The trading range has been 4696 to 4639.
On the Natural Gas front the September contract expires today. And so far there has been pretty quiet trade with refineries in Galveston shutting down and talk of getting Houston refineries back online with some pinpointing as early as Wednesday or Thursday. In the overnight electronic session the October Natural Gas is currently trading at 2.966, which is a ½ of a cent higher. The trading range has been 2.975 to 2.934.
On the Corn front the market just can’t seem to get legs under it even at these price levels where sellers do not see much more downside that would be worth the risk with the move we have seen this summer. Early frost and remnants of Harvey could even be more demand destruction, which will keep investors guessing how this will effect deliveries in this market. In the overnight electronic session the September Corn is currently trading at 333 ¾ which is 2 ¼ cents lower. The trading range has been 336 to 333.
On the Ethanol front there were no trades posted in the overnight electronic session. The October contract settled at 1.457 and is currently showing 1 bid @ 1.457 and 1 offer @ 1.465 with Open Interest at 954 contracts.
Have a Great Trading Day!