Friday’s report showed two sides of the coin with slightly higher yields and smaller acreage, overall mostly neutral. Soybean farmers are not happy with current prices and soybean oil strength due to palm oil numbers a concern, and bring palm oil buyers over to soybean oil market, which will add strength to soybeans and could spill over to the corn market even after a mostly neutral Crop Production USDA Supply/Demand report on Friday. In the overnight electronic session, the December corn is currently trading at 382 ½, which is ¼ of a cent lower. The trading range has been 385 ¼ to 380 ¼ so far. This could be a start of a bullish day, with a weaker U.S. dollar this morning.
On the ethanol front, there were no trades posted in the overnight electronic session. The November contract settled at 1.541 and is currently showing 1 bid at 1.516 and 1 offer at 1.554.
On the crude oil front, we are hovering around the $50 area with the November contract currently trading at 4970, which is 7 points higher in the overnight electronic session. The trading range has been 5013 to 4947 so far. I remain bullish at these levels.
On the natural gas front, the November contract is currently trading 2.522, which is .020 cents higher in the overnight electronic session. The trading range has been 2.559 to 2.512 so far. The market is looking like it wants to add premium in this shoulder season, and supplies could become a concern if we have another tough winter in which our forecasting a light el-Niño winter.