Good Morning!
A breaking story publish by Agrimoney yesterday right after the announcement of the OPEC production cut told a story the Agriculture markets, thanks to innovations such as drones, “on the brink” of an information revolution that could fill the information gap in notable regions such as the Black Sea and this information will translate to investors the condition of crops such as Coffee, Corn, Soybeans, Wheat, etc. Also the development of satellite technology are already transforming the availability of data for energy investors. This tool would give investors an indication of Oil inventories ahead of the benchmark monthly reports from the International Energy Agency (EIA).
On the Grain front yesterday was First Notice Day on December contracts so we will roll to the March contract, which the March Corn is currently trading at 349 ¼ which is ¾ of a cent higher. The trading range has been 349 ¾ to 348 ½.
On the Ethanol front the market was surfing the OPEC wave and traded higher with decent activity in yesterday’s trading session. It is however quiet in the overnight electronic session with no trades posted in the December contract that settled at 1.650 and is showing no bid or ask with a waning Open Interest of 31 contracts. Meanwhile the January contract settled at 1.574 and is showing 5 bids @ 1.560 and 4 offers @ 1.583.
On the Crude Oil front OPEC framed a cut in production of 1.2 million barrels a day prompting the largest rally in 10 months. It seems investors were mostly caught short not believing OPEC would come to their senses and get the market back in balance. In the overnight electronic session the January contract is currently trading at 5008, which is 64 points higher. The trading range has been 5024 to 4898.
On the Natural Gas front the market has rallied with warm weather now a record cold front has been forecasted that could shatter records and this should drive prices even further. With the U.S. for the first time in history being a net exporter of this commodity and the retirement of Coal and nuclear plants we could see a rally of historic proportions as coal and nukes will not be around to back up the power grid this winter when we heat our homes. In the overnight electronic session the January contract is currently trading at 3.407, which is 5 ½ cents higher. The trading range has been 3.416 to 3.316.
Have a Great Trading Day!