Active Hurricane Season Today is Katrina’s Anniversary
With Katrina’s devastation still fresh in our minds, this 11th year anniversary we have an active hurricane season already in both the Atlantic and Pacific oceans. The Coast Guard and Navy are watching Tropical Depression Nine which is entering the Gulf of Mexico moving west at 8 knots. This could bring natural gas players back in the market.
Today is the last trading day in the September contract, so we can expect late rollovers and liquidations moving into October and other deferred months. In the overnight electronic session the October contract is currently trading at 2.903, which is 1 cent lower. The trading range has been 2.917 to 2.875.
After the conference in Jackson Hole, Wyoming and UK Summer Bank holiday we also have Personal Income, Weekly Export Inspections and Crop Progress to start the week. The yields remain the story with no records, but enough of a yield to meet demand according to prognosticators.
In the overnight electronic session the September Corn is currently trading at 315 ½ which is ¾ of a cent lower. The trading range has been 318 ¾ to 315 ¼. Remember that Wednesday is First Notice Day on all September grains.
On the ethanol front there were no trades posted in the overnight electronic session. The September contract settled at 1.442 and is currently showing 1 bid at 1.435 and 2 offers at 1.490, which is quite a wide spread.
On the crude oil front the market is waiting to be fed more bullish news, and a higher U.S. dollar was not quite what the bulls were looking for on the menu. The Tropical Disturbances in the Gulf of Mexico and the upcoming OPEC meeting may stir the bullish pot.
In the overnight electronic session the October crude oil is currently trading at 4697, which is 67 points lower. The trading range has been 4728 to 4678.