Button Up Before Thanksgiving
I was granted a pardon unlike the Turkey I will devour on Thursday and will not write a report on Friday. As we pack it in on Thursday, Thanksgiving Eve does not hesitate or wait in the markets. Reports are abundant today whether or not pushed up so we can enjoy our custom of giving thanks to what God gave us.
Wednesday's reports starting with Advance Durable Goods and Initial Jobless Claims at 7:30 A.M. New Home Sales at 9:00 A.M. and EIA Energy Stocks at 9:30 followed by EIA Gas Storage at 11:00 A.M. Dairy Products at 2:00 P.M. and of course, the Fed wants to join the party and give us the minutes of the last meeting.
In the overnight electronic session the December Corn is currently trading at 347 ¾ which is 3 ¼ cents lower. The trading range has been 350 ½ to 347 ½. The USDA recapitulated the Corn carryout for 2016-2017 with an increase which will not be a good with a higher U.S. dollar for exports and we watch weather in competing export countries.
On the Ethanol front there were no trades posted in the overnight electronic session. The December contract settled at 1.601 and is currently showing 1 bid @ 1.595 and 1 offer @ 1.617.
On the Crude Oil front last night’s API Energy Stocks showed draws of 1.28 million barrels and Cushing, Oklahoma down 140 thousand barrels. Distillates were down 350 thousand barrels while Gasoline had an increase we have not seen since February.
Wednesday morning’s EIA Energy Stocks and the pending results of the OPEC meeting next Wednesday should be the recognizable fundamental factors to drive this market over $50 a barrel or $55 a barrel by years end. In the overnight electronic session the January Crude Oil is currently trading at 4793 which is 10 points lower. The trading range has been 4834 to 4774.
On the Natural Gas front it is all about capacity, exports, demand and weather that will either increase demand or delude it depending on the winter months. After the current run-up contrasting weather forecasts have put the brakes on the rally at these levels. I still expect to see product move at a record pace and we will wonder what full capacity means.
In the overnight electronic session the December contract is currently trading at 2.922 which is 6 cents lower. The trading range has been 2.974 to 2.920. Remember the EIA Gas Storage report comes out at 11:00 A.M.