In yesterday’s trading session we saw the Dow Jones and NASDAQ stocks reach new record highs and record close. The market is seeing some heavy selling pressure in the overnight electronic session. This is not a correction but a mere selloff and as we weighed on the 30 anniversary of the 1987 Stock Market crash when this crash happens, which I am not sure when but it will make 1987 look like a walk in the park. Today’s reports start out with Export Sales and Initial Jobless Claims at 7:30 A.M. followed by EIA Gas Storage at 9:30 A.M.
On the Corn front we just seem to be on the path of nowhere to go as harvest picks up before rains forecasted in certain growing regions. Exports of Ethanol in a huge way to China will be a game changer but that is at least 2 years away and off the beaten path with for the fundamentals in the near term future. In the overnight electronic session the December Corn is currently trading at 349 ½ which is 1 cent higher. The trading range has been 349 ¾ to 348 ¾.
On the Ethanol front the November contract posted a trade at 1.416 which is a ½ of a cent higher. That was the only print and the market is currently showing 1 bid @ 1.412 and 5 offers @ 1.425 with 2 contracts traded and Open Interest at 948 contracts.
On the Crude Oil front the November contract expires tomorrow so we will now focus on the December contract. The market is down in the overnight electronic session which could be attributed to the recent higher U.S. dollar and a weaker Stock Market this morning. Speaking at the Oil & Money conference yesterday, Total CEO Patrick Pouyanne was quoted, “OPEC and a group of non-cartel members including Russia has helped shrink inventories since it was implemented in January.” He was further went on to say, I said in January right after the agreement when I was in Abu Dhabi if the OPEC and non-OPEC agreement has any effect it should last at least for 2 years.” Sara Sjolin from CBS Market Watch reported. In the overnight electronic session the December Crude Oil is currently trading at 5153 which is 73 points lower. The trading range has been 5239 to 5138.
On the Natural Gas front the November contract is currently trading at 2.859 which is a ½ of a cent higher. The trading range has been 2.884 to 2.844. This morning we have the weekly EIA Gas Storage data and the weekly poll from Thomson Reuters Scott Disavino shows the poll with 26 analysts participating showed injection builds ranging from 44 bcf to 80 bcf with the median of 55 bcf. This compares to last week at 87 bcf, the one-year st 77 bcf and the five-year average of 78 bcf.
— Daniel Flynn
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