The good news spillover to the markets did not last long. The Stocks are getting crushed early, U.S. dollar is trading higher, Crude Oil is down significantly even with the recent disruptions in the Gulf of Mexico supplies seemed to be back on track to meet demand. Natural Gas is trading higher at the moment with a possible squeeze play at Henry Hub with a company not able to take delivery at the Henry Hub. Corn is trading easier after the USDA data and today we may be trading peaks and valleys or parabolic.
In the overnight electronic session the December Corn is currently trading at 336 ½, which is 3 cents lower. The trading range has been 341 ½ to 335 ½. Weather will factor the rest of the week with cooler temperatures and rain forecasted. Tomorrow all September Grains expire and go off the board.
On the Ethanol front there were no trades posted in the overnight electronic session. The October contract settled at 1.520 and is currently showing 5 bids @ 1.507 and 1 offer @ 1.626. This is a very wide spread in a very thin market.
On the Crude Oil front we have the weekly API data to be released at 3:30 P.M. today and the market seems to be pricing in builds along with no help on a higher U.S. dollar and lower stock market. In the overnight electronic session the October contract is currently trading at 4535 which is 94 points lower. The trading range has been 4613 to 4504. We still have tropical storm activity that could raise some eyebrows.
Speaking of tropical storms, the Natural Gas investors are monitoring tropical storm Ian right smack in the middle of the Atlantic moving north-northwest at 8 knots with Maximum Sustained Winds at 40 knots. The current trajectory does not favor a big threat to the gulf region unless the path changes. Another Disturbance off the west-coast of Africa with a broad area of low pressure, associated with a tropical wave about 200 miles east-southeast of the Cabo Verde Islands is on our radar and could be the next threat. In the overnight electronic session the October Natural Gas is currently trading at 2.905 which is 1 cent lower. The trading range has been 2.939 to 2.891. The market is trading on a light volume chop in the early going.