Round 2 with Harvey
If it was not a knockout blow. The first round Harvey is again making landfall on the Texas Louisiana state line. The only good news that can be surmised is that there is less rain but could still cause substantial flooding, but is moving faster than the last landfall at 6 knots moving north-northeast. The National Weather Service issued a flashflood watch for all southeast parishes in greater New Orleans and Baton Rouge. Still a lot of concern in Lake Charles.
Colonial Pipeline is having troubles with a pipeline artery that heads up all the way to New Jersey. Another Tropical storm is forming of the coast of South Carolina and we are also tracking a system just west of the Cabo Verde Islands. It is too early to tell but this Disturbance could threaten the Gulf of Mexico region as well in this active hurricane season that normally comes to a close in October with September the normally most active month.
Meanwhile the API Energy Stocks showed draws of 5.8 million barrels. And we can expect fracking reservoirs not to produce like the once did or at all, also coils are used for fracking and these coils that are damaged will take all long time to get back on line and these coils need trucks with extra axles to make the delivery point from where there made the overpasses make this a further difficult process.
This morning we have the EIA Energy Stocks which will most likely paint the same picture as the API data. In the overnight electronic session the October Crude Oil is currently trading at 4617 which is 27 points lower. The trading range has been 4640 to 4605. And we just received breaking news Port Arthur has been officially closed.
On the Natural Gas front the market is also trading demand destruction and around the country production has come to a trickle so close to shoulder season and these price levels. The market is waiting to hear what the troops on the ground access the magnitude of the damage and we need flood waters to subside. We know one thing for sure it is not going to be pretty. In the overnight electronic session the October Natural Gas is currently trading at 2.953 which is 3 cents lower. The trading range has been 2.980 to 2.951.
On the corn front we actually have an uptic in the market which has been in selloff mode with no bottom in sight even at these levels. We may be very close with weather changes and rains and frost in the forecasts. We also may have shipping concerns with trucks and ships not being able to get to their given destination. In the overnight electronic session the September Corn is currently trading at 333 ¾ which is ¼ of a cent higher. The trading range has been 334 to 332 ¾.
On the Ethanol front the October contract posted a trade at 1.450 which is .001 of a cent lower. 2 contracts traded at that price with the market showing 1 bid at 1.434 and 4 offers 1.450 with Open Interest at 977 contracts.