Inflation
That’s a word I have not taken seriously since the 1980s. The greenback's rise and the Fed talk of raising Interest Rates bring back fond memories of some decades ago. The drama the markets are experiencing is one that is “let’s move in a direction” whether good or bad at least we will not be ‘dead in the water”. As investors concerns about the hysteria the breath of fresh air that the Free Markets can achieve and we look forward to the next adventure.
On the Corn front the market is trending lower with the U.S. dollar rally and yields predicted to be a record bumper crop, not to mention unseasonably warm weather this far in November. Exports remain key as we look at carryouts to remain the same if not grow larger. Juggling the numbers of yields, weather both here and South America is keeping farmers and investors on their toes guessing what is next. In the overnight electronic session the December Corn is currently trading at 336 ¾, which is a ½ of a cent lower. The trading range has been 337 ½ to 335 ¾. As we move forward to the close of this harvest season there are still a lot of questions to be asked.
On the Ethanol front there were no trades posted in the overnight electronic session. The market is coming to grips we being a follower of the Corn crop and Crude Oil and Gasoline in the Energy sector. The December contract settled at 1.521 and is currently showing 1 bid @ 1.511 and 1 offer @ 1.539.
On the Crude Oil front words from OPEC knowing that it is a necessity for those countries to strike a deal and curb production. When the Crude Oil was pushing for $40 a barrel or cheaper cooler heads prevailed. The cartel’s wishes is at least $50 a barrel as we head into tonight’s American Petroleum Institute (API) weekly inventory data. In the overnight electronic session the December Crude Oil is currently trading at 4458 which is 126 points higher. The trading range has been 4495 to 4355.
On the Natural Gas front the market is rebounding off the slaughter of new lows due to unseasonable warm weather which made for a longer shoulder season. New weather forecasts predict Old Man Winter will get us this weekend and will not give us a reprieve until spring or summer, which has investors trying to scoop up value. In the overnight electronic session the December Natural Gas is currently trading at 2.784, which is 3 ½ cents higher. The trading range has been 2.815 to 2.733.
Have a Great Trading Day!