Good Morning!
Floods in Wisconsin and Iowa are really causing major problems this harvest. Cedar Rapids, Iowa second largest city is being evacuated because of flood waters from the Cedar River. Cargill’s Grain Facility which was closed last week and is located on a downhill slope, which will make recovery very difficult and challenging. In the overnight electronic session, the Grain complex seems to be ignoring the threat with Rice and Soybean Oil the only Grains trading higher. The December Corn is currently trading at 334, which is 2 ½ cents lower. The trading range has been 336 ½ to 333 ½.
On the Ethanol Front there were no trades posted in the overnight electronic session. This market may be concerned with the floods in Corn country and the OPEC meeting. The October contract settled at 1.546 and is currently showing 5 bids @ 1.527 and 1 offer @ 1.580.
On the Crude Oil front excitement among investors that OPEC will reach an agreement in Algiers this week on a prospects of a production freeze and possibly production cuts. Negotiations seem to be headed in the right direction after touchy talks between Iran and Saudi Arabia if in fact OPEC or and Independent Agency would verify counties were compliant to the agreement. In the overnight electronic session, the November Crude Oil is currently trading 4495 which is 47 points higher. The trading range has been 4522 to 4443.
On the Natural Gas front, remnants of Tropical Storm Lisa now have been downgraded to a Disturbance and looks to be no threat to the U.S. coast. There is another Disturbance where we should monitor it’s progress that is 1100 mile east-south-east of the Windward Islands. The threat is real and is a threat to the eastern and central Caribbean Sea and the northern coast of South America. The storm could change course and pick up steam over the water and threaten the Gulf of Mexico. In the overnight electronic session, the October Natural Gas is currently trading at 2.975, which is 2 cents higher. The trading range has been 2.997 to 2.943.