FED Decision Today
Good Morning!
We kickoff the day with Housing Starts & Permits at 7:30 A.M., EIA Energy Stocks at 9:30 A.M., Dairy Product Sales at 2:00 P.M. and the much anticipated FED announcement at 1:00 P.M. On the Corn front, Mondays Crop condition report was unchanged from the previous week. This cause bears to further pile on and the market settled 6 ¼ cents lower in yesterday’s action. Better weather forecasts are also factoring in making the market heavy. In the overnight electronic session the December Corn is currently trading at 367, which is 1 cent lower. The trading range has been 370 to 367.
On the Ethanol front, we have a tug of war between Corn farmers and Oil refineries. Senator Chuck Grassley wants President Trump’s ethanol fix put on paper before he would support it. There were no trades in the overnight electronic session. The October contract settled at 1.378 and is currently showing 1 bid @ 1.366 and 1 offer @ 1.381 with Open Interest declining to 275 contracts.
On the Crude Oil front, we are trading headline after breaking headlines. The Saudi’s are expected to have a press conference at 9:00 A.M. with proof of where the drones came from and who the culprit was. The question is… What response if any may come into play? Other factors will be the EIA Energy report at 9:30 A.M., and I am hearing whispers of another build on this report. And we have the FED announcement that could be a gamechanger and put a bullish spin back in the market. In the overnight electronic session the October Crude Oil is currently trading at 5840, which is 94 points lower. The trading range has been 5943 to 5825.
On the Natural Gas front, the October contract is currently trading at 2.688, which is 2 cents higher. The trading range has been 2.696 to 2.647. Market is trading quiet in shoulder season.
Have a Great Trading Day!