Good Morning!
Tropical Storm Jose still a threat in the Energy sector with a threat to refineries in the northeast with maximum sustained winds at 55 knots with movement at 7 knots. Maria’s cone has her moving away from the Gulf of Mexico and out back to the Atlantic but it is still too early to judge the final destination of the actual path as this Category 4 with maximum sustained winds at 135 knots moving northwest at 9 knots. And we have another Disturbance that has a 60% chance of a Cyclone formation in 48 hours. We will be monitoring these storms as refinery workers in the northeast are lending a hand to refineries in the Gulf region and Jose could threaten refineries in the northeast which could another key outage. Also Maria is rampaging offshore oil tanks we also rely on in the Caribbean. Last night’s weekly API Energy Stocks data showed builds in Crude Oil of 1.443 million barrels, Cushing, Oklahoma had builds of 422 thousand barrels but the disturbing numbers were the big draws in Gasoline stocks at 5.063 million barrels and Distillates down 6.131. Today we have Existing Home Sales at 9:00 A.M., EIA Energy Stocks at 9:30 A.M., Dairy Product Sales at 2:00 P.M. and the FED announcement of Interest Rates, which I expect no hike but the verbiage whether dovish or hawkish could move the Stock Indices futures. With all of the information coming to bare today and if we have a bullish EIA Energy Stocks number the Energy Complex should seek higher highs and the Bollinger® band number basis the November contract is 5122 to achieve a breakout to the upside. In the overnight electronic session the November Crude Oil is currently trading at 5050 which is 60 points higher. The trading range has been 5055 to 5015.
On the Corn front we have warmer than normal temperatures in the next week, which will give farmers a good jump on harvest. The market traded lower yesterday with the rest of the Grain Complex. We will be trading weather and acres to bushel from here on out. In the overnight electronic session the December Corn is currently trading at 349 ½, which is 1 ¼ of a cent higher. The trading range has been 349 ½ to 347 ¼.
On the Ethanol front the October contract posted a trade at 1.559, which is .002 of a cent higher. 1 contract and the market is currently showing 1 bid @ 1.556 and 2 offers @ 1.567 and Open Interest at 459 contracts and now the November contract surpassing in Open Interest at 495 contracts.
On the Natural Gas front the market is trading on storage fears as well, which could really spike prices. The key factor of course will be weather patterns. In the overnight electronic session the October contract is currently trading at 3.122, which is unchanged. The trading range has been 3.148 to 3.111.
Have a Great Trading Day!