U.S.-China Trade Talks Resume Next Week
Good Morning!
This morning’s report is Consumer Confidence at 9:00 A.M., followed later in the afternoon with API Energy Stocks at 3:30 P.M. There is also Tropical Storm activity in the Atlantic and we are watching the threat of Tropical Storm Karen, which is expected to bring heavy rain and flash floods to Puerto Rico and the U.S. and British Virgin Islands. We are also monitoring Tropical Storm Lorenzo which is lurking in the Atlantic and at the moment does not pose a threat to the U.S. mainland. On the Corn front, wet weather pushed prices higher in yesterday’s action, but the Crop Progress put a bearish spin even with frost scares on the horizon and U.S.-Sino talks resuming next week. More rains are forecasted with cooler temperatures that could even further slow harvest. In the overnight electronic session the December Corn is currently trading at 370 ¾, which is 2 ½ cents lower. The trading range has been 372 ½ to 370 ¼.
On the Ethanol front, the November contract posted a trade at 1.355, which is .020 lower. The market is currently showing 1 bid @ 1.355 and 1 offer @ 1.379 with 1 contract traded and Open Interest at 294 contracts.
On the Crude Oil front. it seems lack of new headlines on the geo-political risk have taken out the upside momentum and the markets are stagnating in a trading range. I expect bullish inventories and any headline out of the U.N. where world leaders meet today to be supportive to higher prices with tight supplies and still glowing demand even in shoulder season. In the overnight electronic session the November Crude Oil is currently trading at 5802, which is 62 points lower. The trading range has been 5849 to 5787.
On the Natural Gas front, it looks like we are experiencing an end to a short squeeze. In the overnight electronic session the market failed to punch through 2.600. The October contract is currently trading at 2.547, which is 2 cents higher. The trading range has been 2.590 to 2.517.
Have a Great Trading Day!
Thanks