Change In The Weather
Good Morning!
Like the John Fogerty song 'Change in the weather,' the closing days in harvest are keeping farmers off the field with wet cold weather. With smaller farmers and remaining acreage the question is do we try and take it out of the ground now or take a beating with silos full and cash prices in the basement. Or do we leave it in the ground and take advantage of higher prices when spring plantings start. When you are cash strapped it is a hard call. In the overnight electronic session the December Corn is currently trading at 338 ½, which is a ¼ of a cent higher. The trading range has been 338 ¾ to 338.
On the Ethanol front there were no trades posted in the overnight electronic session. The December contract settled at 1.408 and is currently showing 2 bids @ 1.401 and 3 offers @ 1.415 with declining st Open Interest at 1,089 contracts.
On the Natural Gas front we have the weekly EIA Gas Storage and the Thomson Reuters poll with 22 analysts participating expect draws from 3 bcf to 23 bcf with the median draw of 14 bcf. This compares to last week injection build of 15 bcf, the 1-year injection build of 34 bcf and the five-year average of injection builds of 12 bcf. The numbers coincides with higher than usual heating demand, rising exports and the retirement of Coal Plants. If we have a cold winter this market will soar to all-time highs. In the overnight electronic session the December Natural Gas is currently trading at 3.100 which is 2 cents higher. The trading range has been 3.101 to 3.071.
On the Crude Oil front the market is still walking on egg shells with the International Energy Administration (IEA) predicting a slowdown on demand with the market in overbought mode, made this correction this week shaky. In the overnight electronic session the December Crude Oil is currently trading at 5515 which is 18 tics lower. The trading range has been 5548 to 5507. Monday is Last Trading Day On December Crude Oil so you want to roll or liquidate before tomorrows close.
Have a Great Trading Day!