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Hurricane Harvey Hits Commodities

Published 08/28/2017, 12:25 PM
Updated 07/09/2023, 06:31 AM
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UK Sumer Bank Holiday

Good Morning!

Hurricane Harvey was all that was advertised with heavy rains the people in Texas were quoted “I never saw this in my lifetime.” It is still too early to assess the damage but rest assured the damage is done. Refinery closures and the ports of Corpus Christ, Galveston and Houston are closed and as we assess the damage we will work on how soon we can safely get these ports back in business. The effect of this storm is going into several commodity sectors, such as, Soybeans and other Grains, Crude Oil and Natural Gas just to paint a picture. In the overnight electronic session the October Crude Oil is currently trading at 4755, which is 32 points lower. The trading range has been 4820 to 4720.

On the Corn front the market is mostly quiet as investors the market assess the weather and the impact of Hurricane Harvey will have in this market. In the overnight electronic session the September Corn is currently trading at 338, which ¾ of a cent lower. The trading range has been 340 ¼ to 337 ¾.

On the Ethanol front the market was quiet posting no trades posted in the overnight electronic session. The October contract settled at 1.448 and is currently showing 5 bids @ 1.440 and 5 offers @ 1.445 with open interest at 887 contracts.

On the Natural Gas front the September contract is set to expire tomorrow so we will shift our focus to the October contract as we assess the impact Harvey had on this market. In the overnight electronic session the October contract is currently trading at 2.894, which is 3 cents lower. The trading range has been 2.950 to 2.891.

Have a Great Trading Day!

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