Good Morning!
More twist and turns as the disbelief of the rank and file that president-elect Trump won the election. The first 100 days of his administration should see sweeping changes in Energy Policy, Affordable Healthcare and taxation. The change in Energy policy may sway OPEC not to reach an accord on production cuts as to keep their market share regardless of prices when they meet later this month or early December. In the overnight electronic session the December Crude Oil is currently trading at 4280, which is 61 points lower. The trading range has been 4359 to 4268. We should see the next line of support at 4230 to 4225 level and see if that can hold.
On the Natural Gas front the market is calculating the latest long-term weather forecasts that are predicting cold fronts heading our way this weekend and might be the last hurrah of unseasonably warm weather. This should pick up demand and may translate into higher prices in the cash and futures markets. In the overnight electronic session the December contract is currently trading at 2.66p, which is 5 cents higher. The trading range has been 2.700 to 2.644.
On the Corn front the December contract is currently trading at 337 ¾, which is 2 ½ cents lower. The trading range has been 341 to 337 ½. There are three fundamentals that are driving prices lower with the U.S. dollar rallying there is no doubt that is dollar related while the two other significant factors is harvest moving at a rapid pace near completion and a larger than expected crop furthering the pressure.
On the Ethanol front there were no trades posted in the overnight electronic session. The December contract settled at 1.520 and is currently showing 2 bids @ 1.475 and 1 offer @ 1.520. This market as well should feel the pressure from current Corn and Energy prices.
Have a Great Trading Day!