Yesterday’s trade had its share of headlines, with the election so close and the market priced in one candidate's victory and now investors are back-pedaling as the election is now up for grabs. Also on investors’ minds is will the Fed raise Interest Rates in this uneasy market environment.
The explosion at the Colonial pipeline added volatility in the Energy sector, raising gasoline prices with fears of shortages. On the Corn front, INTL FCStone Inc (NASDAQ:INTL) raised estimates on yields 63 billion bushels. In the overnight electronic session, the December corn is currently trading at 348 ¾ which is a ¼ of a cent lower.
The trading range has been 350 to 348 ¼ in light volume. On the ethanol front, as the November contract is set to expire, there is an open interest of 17 contracts and a wide spread with 3 contracts bid at 1.597 and 5 contracts offered at 1.670 with a settlement price of 1.635.
On the crude oil front, the market continues to trade lower. The weekly API showed an unbelievable whopping build of 9.3 million barrels. With a jittery stock market was an aftershock after the initial earthquake. In the overnight electronic session, the December crude oil is currently trading at 4592 which is 75 points lower. The trading range has been 4647 to 4582.
This morning’s EIA data may show a different story. On the natural gas front, the market continues to slide with the unseasonable warm weather. In the overnight electronic session the December contract is currently trading at 2.802 which is 10 cents lower. The trading range has been 2.889 to 2.798. I believe the tide will turn when the weather changes.