Good Morning!
Bearish sentiment continues after Thursday’s Crop Production USDA Supply/Demand data. I also anticipate weather to play a factor as we move through harvest and not ½ done. In the overnight electronic session the December Corn is currently trading at 352, which is ¾ of a cent lower. The trading range has been 353 ¼ to 351 ¼. This market may reach an historic long-term low with exports of Ethanol to be sold to emerging markets. And based on the whisper numbers I am hearing, this is the calm before the storm.
On the Ethanol front the November contract is currently trading at 1.429, which is .002 of a cent lower. The trading range has been 1.429 to 1.422 with Open Interest declining below one thousand contracts with 969 contacts open. The market is currently showing 2 bids @ 1.422 and 1 offer @ 1.429.
On the crude oil front the market is rolling without my bullish bias. There are fundamental headlines driving this market for the short-term but basic fundalmentals will drive this market in the long-term and be the real story. In the overnight electronic session the November Crude Oil is currently trading at 5206, which is 61 points lower. The trading range has been 5237 to 5135.
On the Natural Gas front warm weather forecasted for the Mid-West this week created profit taking long liquidation. In the overnight electronic session the November Natural Gas is currently trading at 293, which are 7 cents lower. The trading range has been 2.977 to 2.908.
Have a Great Trading Day!