Tracking Tropical Depression 9
The active storm season in the Atlantic is posing another threat to the U.S. southern energy hub that deals with movement of Crude Oil and Natural Gas. The critical area that has investors’ attention is the Henry Hub in Erath, Louisiana to the Houston Shipping Channel and pipelines in Galveston. This tricky storm is located in the Gulf right now moving west at 6 knots. Computer forecast have the cone of the storm doing a reversal that is predicted to hit the Florida west coast late Thursday or early Friday morning. This storm will keep investors on edge this week. In the overnight electronic session the October Natural gas is currently trading at 2.926 which 3 cents higher. The trading range has been 2.926 to 2.889. Extreme weather conditions should test the energy grid and speculators fears that the storm does not reverse from the Oil and Gas hubs.
On the Crude Oil front we have the weekly API data to be released at 3:30 P.M. which could raise the bullish stakes even with the U.S. dollar trading higher in both this mornings and yesterday’s trading session as investors do not want to get caught short. They are shutting down production in the Gulf as we speak for precautionary measures and we should see a rise in both Crude and Gas prices. In the overnight electronic session the October contract is currently trading at 4735 which is 37 points higher. The trading range has been 4745 to 4694.
On the Ethanol front there were no trades posted in the overnight electronic session. The September contract settled at 1.440 and is currently showing 1 bid at 1.444 and 3 offers at 1.463.
On the Corn front and the whole Grain front the action in yesterday’s trading session was disappointing to traders and sellers. Yesterday’s declines will only spark another overdue rally and current weather conditions are cooperating for another rally before the whole harvest pressure shooting match is over. I anticipate higher prices in the Grains during the winter months. In the overnight electronic session the September Corn is currently trading at 312 ½ which is ¾ of a cent higher. The trading range has been 312 ¾ to 309 ¾ in the early going. Remember tomorrow is First Notice Day on all September Grains so we will shift our focus to the December Corn contract.