Dan Flynn is the writer of The Corn & Ethanol Report, a daily market letter covering grains, energies, and various global issues that are the driving force and backbone of the commodity markets. Contact Mr. Flynn at (312) 264-4374
With autumn beginning and the weather feels like Mid-August it would not be an ideal time to visit the pumpkin patch as we start thinking Halloween and Thanksgiving. The Grains are trading higher in the overnight electronic session. This could lead to an interesting close given export and import news from China and South America which points to very limited upside on Soybeans while the market is trading 7 ½ cents higher in the early going, and October Option Expiration we could have a surprise shock to the system. News that China is expected to import more Corn for Ethanol usage and the December Corn is currently trading at 352 which is 1 ¾ of a cent higher. The trading range has been 352 ¼ to 349 ½ we could see further harvest pressure with the current weather forecast.
We also have Cattle on Feed and Cold Storage at 2:00 P.M.
On the Ethanol front the October contract is currently trading at 1.525 which is .014 of a cent higher. The trading range has been 1.525 to 1.523 and the market is currently showing 2 bids @ 1.529 and 1 offer@ 1.537 with Open Interest down to 266 contracts.
On the Crude Oil front this market is poised to make a jump but fears with Oil ministers from OPEC, Russia and other producers meeting in Vienna to discuss further extensions of production cuts that currently runs to March. In the overnight electronic session the November Crude Oil is currently trading at 5040 which is 15 points lower. The trading range has been 5078 to 5032. The Kuwaiti Oil Minister was quoted saying the market is well on its way to get back in balance which is a signal to investors of doubt that they will continue to be unified in production cuts with worldwide shortages and demand on the rise. Let’s see how the Vienna talks go.
On the Natural Gas front after yesterday’s huge selloff after the bearish EIA Gas Storage data which led to long liquidation. The October contract is currently trading at 2.951 which is a ½ of a cent higher. The trading range has been 2.968 to 2.947. Hotter than normal temperatures we are realizing now and forecasted into next week and cold weather forecasted in October as well a nasty cold winter forecasted and global demand picking up with production down is the perfect recipe for higher prices.
Questions? Ask Dan Flynn today at 312-264-4374
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