We start the morning with Business Inventories and Retail Sales at 7:30 A.M. We are also gathering and digesting all of the trade headlines that keep popping up. With weather one of those many headlines with all of the heavy rains we have received and once again we are waterlogged. In the Atlantic we have Tropical Cyclone Nine moving to the east coast and bring heavy rainfall to portions of the Bahamas already battered by Dorian. And there are two other Disturbances brewing in the Atlantic. On the Grain front all September Grains expire today. On the Corn front the U.S. Agriculture Department saw Corn & Soybean will be 1% smaller than last fall. Both crops will be way behind their typical development with late plantings. Corn harvest will be curtailed by a low ear count and Soybean harvest by a low pod count.
It may take until the combines to come to the realization how short this crop is going to be. In the overnight electronic session the December Corn is currently trading at 369 ¾ which is 2 ½ cents higher. The trading range has been 371 ¾ to 366 ¼.
On the Ethanol front today is the day of reckoning whether biofuel producers accept or deny the negotiated deal on blends of biofuels in Gasoline. The Trump Administration is trying to cut a deal that both sides can live with. In the overnight electronic session the October Ethanol is currently trading at 1.355 which is .009 higher. The trading range has been 1.355 to 1.349. The market is currently showing 1 bid @ 1.356 and 1 offer @ 1.365 with 15 contracts traded and Open Interest at 355 contracts.
On the Crude Oil front the market rallied back on good news that both China and the U.S. are showing flexibility before the face to face trade talks. This could mean China may be caving with President Xi on the hot seat with Hong Kong and a slowdown in their economy. There were other whispers that there may be an Iranian waiver which hammered the market. However, if a trade deal is struck we will need that Oil on the market because we have tight supplies as it is now and we get the economies rolling again demand will skyrocket. Other headlines that could impact the market are rumors that China and Russia are buying Gold expecting an impending Currency war with the ECB lowering Rates 10 basis points yesterday. In the overnight electronic session the October Crude Oil is currently trading at 5542 which is 33 points higher. The trading range has been 5546 to 5444.
On the Natural Gas front the market is trading higher mainly with risk on with Tropical Storm Nine path is still in question. In the overnight electronic session the October contract is currently trading at 2.579 which is a ½ of cent higher. The trading range has been 2.589 to 2.564.
Have a Great Trading Day!
Dan Flynn