Farmer’s Almanac Predicts Snowy Cold Winter
Yes, the Farmer’s Almanac is forecasting a snowy November and a February that will make you shiver with arctic bitter cold.
That makes for a long winter and a long shortest month on the calendar. Which does not bode well for cheap natural gas prices as demand will peak to keep your home warm and we won’t have coal plants to back up the drain in natural gas supplies and make up the difference on the power grid.
In the overnight electronic session the September natural gas is currently trading at 2.617, which is unchanged. The trading range has been 2.647 to 2.608.
On the corn front still nobody believes the USDA’s yield numbers on corn, but the soybeans do seem more believable, and why the market is rallying is everybody’s guess. This could be the precursor to a textbook Sell-The-Corn, however it can’t seem to mount any sustainable rally and most likely will get pressured and go lower if large sell orders come dropping prices at harvest.
In the overnight electronic session the September corn is currently trading at 328 ¼, which is ¾ of a cent higher. The trading range has been 329 to 327.
On the ethanol front the September contract posted a trade at 1.472, which is .027 cents higher. The market is currently showing 1 bid at 1.451 and 1 offer at 1.467. Weekly inventories should not produce any sort of surprise.
On the crude oil front the market faded off the bullish news that Russia plans to meet with OPEC countries in October. Iran of course has to throw a curveball and said it may not participate in the meeting in Algeria, which did anything but stabilize the edgy market. Also, the API showed a surprise build in crude stocks that further weakened prices.
In the overnight electronic session the September crude oil is currently trading at 4629, which is 29 points lower. The trading range has been 4648 to 4604. EIA Energy Stocks to be released at 9:30 CST.