Hold on Reconstruction Begins
Hurricane or Tropical Storm Harvey is not yet in the rear view mirror yet but we are ready to roll up our sleeves and get to work. We have another scary proposition with Tropical Storm Irma lurking in the shadows in the Atlantic moving west at 10 knots. The National Hurricane Center shows a cone that it is on track to make landfall in the Yucatan Peninsula, but as we have learned from our current experience, “Don’t fool with Mother Nature”. Our hearts and Prayers go out to the victims of this storm that has separated families and loved ones. God Bless you.
On the Corn front Reuters reported what a lot of investors saw this entire growing season that old crop will bolster deliveries against the Chicago Board of Trade Corn futures on this First Notice Day of all September Grain contracts. Deliveries are expected to be large but the current extreme weather may disrupt deliveries given what part of the country you live in. In the overnight electronic session the September Corn is currently trading at 328 ¾ which is ¾ of a cent lower. The trading range has been 330 ¼ to 328 ¾.
On the Ethanol front the October contract is currently trading at 1.430 which is .004 of a cent higher. The trading range has been 1.430 to 1.425 with the market currently showing 4 bids at 1.430 and 1 offer at 1.447 with 4 contracts traded and Open Interest at 878 contracts. With our current situation bio-fuels take a back seat until we get refineries up and running regardless of export potential. Shipping lanes and delivery points make that subject a moot point in this chapter of the story.
On the Crude Oil front the October contract is currently trading at 4607 which is 11 tics higher. The trading range has been 4633 to 4558. The market has taken a pause from free-falling as Troops on the ground access damage control and we will see pipeline closings while investors will be aware of progress in the current circumstances.
On the Natural Gas front the market is trading a little easier as investors again watch the progress of companies getting back on line in this shoulder season. In the overnight electronic session the October Natural Gas is currently trading at 2.909 which is 3 cents lower. The trading range has been 2.947 to 2.908.