On the Hurricane Front Eta is now projected to cause like-threatening flash flooding and river flooding along portions of Central America, along with landslides in area of higher terrain. Flash Flooding is also possible across Jamaica, southeast Mexico, El Salvador, Southern Haiti, and the Cayman Islands through Friday evening. Eta is forecast to regain tropical storm strength before it moves across portions of Cuba and approaches southern Florida this weekend. It is too soon to determine, exact timing, magnitude, and location of possible impacts from wind and rainfall, interests in Cuba, southern Florida, and the Florida Keyes should monitor the progress of Eta over the weekend.
On the corn front the market lost ground in Asian trade. “All eyes are on the U.S. elections but for agricultural markets fundamentals of supply-demand are key movers,” said Phin Zietell agribusiness economist at National Australia Bank. The U.S. harvest was 82% complete for corn and 87% for soybeans, with both ahead of the five-year average but short on the average analyst expectations. Trading in Ag markets was subdued amid uncertainty over U.S. election results. In the overnight electronic session, the December corn is currently trading at 400 ¼ which is ¾ of a cent lower. The trading range has been 400 ¼ to 396 ½.
On the ethanol front this market joins with other market players with concerns of Decision 2020. Now China is looking to purchasing more U.S. ethanol which could be very lucrative, farmers and ethanol industry experts want to continue seeing trade deals on a more even playing field. A Biden win would send shockwaves through many industries that have coped with and are coping with lockdowns for COVID-19 and an export market coming back into play. A change in the presidency will almost certain change the clear momentum achieved in this brutal 2020. It is Last Trading Day for November ethanol. There were no trades posted in the overnight electronic session. The December ethanol settled at 1.380 and is currently showing 0 bids and 2 offers at 1.479 with Open Interest at 44 contracts.
On the crude oil Front the market is rolling after yesterday’s API Energy Stocks showing Crude stocks down -8.01Mb, Cushing +981Kb, gasoline +2.45Mb and distillates -5.77Kb. This market will be watching election results from the northern battleground states that hold the key to the next boom or bust in this industry It is vital to keep fracking and tax cuts, incentives, and less regulation to make this a bona fide market that the country will prosper. In the overnight electronic session, the December crude oil is currently trading at 3853 which is 87 points higher. The trading range has been 3892 to 3726.
On the natural gas front the market is in a little bit of a lull at the moment. But the warm weather at hand will give way to colder more November like weather next week. We have the EIA Gas Storage tomorrow that could change the slower trade bias for the time being. In the overnight electronic session, the December natural gas is currently trading at 3.030 which is .029 lower. The trading range has been 3.091 to 3.023.