Trump to meet with U.S. Senators over Biofuels Policy
Good Morning!
We kickoff the day with Export Sales and Jobless Claims at 7:30 A.M., followed by EIA Gas Storage at 9:30 A.M. Yesterday the FED cut rates ¼ of a point. There was anything but unity on this 7-3 vote. James Bullard, the President of the Federal Reserve Bank of St Louis wanted a bigger cut while Esther George, President of the Kansas City Federal Reserve and Eric Rosengren President of the Federal Reserve Bank of Boston wanted no rate cut at all, following their no vote in July. The Fed ultimately decided to cut largely because of the risk of the trade war with China, while President Trump was hoping for a bigger cut from FED officials. On the corn front, the December Corn rallied back from Tuesday’s 6 cent selloff in yesterdays action settling at 371 ¼, which was 3 ½ cents higher. The market was not able to sustain the gains in the overnight electronic session with the December contract currently trading at 370 which is 1 ¼ of a cent lower. The trading range has been 371 ¾ to 369 ½.
On the Ethanol front, a statement from Louisiana Senator Bill Cassidy’s office that President Trump will have several meetings with Senators and also held with biofuel and Oil refining advocates to negotiate a compromise between the two sides that have clashed over biofuel blending mandates. There were no trades posted in the overnight electronic session. The October contract settled at 1.386 with the market currently showing 1 bid @ 1.369 and 1 offer @ 1.404. and Open Interest at 251 contracts.
On the Crude Oil front. tomorrow is the Last Trading Day on the October contract. Yesterday’s EIA Energy Stocks were less bearish than Tuesday afternoons API Energy Stocks. The FED cutting rates helped as well. And now we are hearing whispers that the Saudis are importing Oil from Iraq, which sends a message to investors that the Saudis overstated how quickly they will be back online and understated the total damage. In the overnight electronic session the November Crude Oil is currently trading at 5920 which is 116 points higher. The trading range has been 5949 to 5802.
On the Natural Gas front, we have the EIA Gas Storage at 9:30 A.M. The Thomson Reuter’s report with 18 analysts participating expect injections ranging from 71 bcf to 85 bcf, with the median build of 79 bcf. This compares to the one-year injection of 74 bcf and the five-year average injection build of 74 bcf. In the overnight electronic session the October contract is currently trading at 2.592 which is 4 ½ cents lower. The trading range has been 2.639 to 2.589.
Have a Great Trading Day!
Thanks