We have the Cattle on Feed report at 2:00 P.M. On the Corn front Mexico is importing at record numbers on Corn and Soybeans even though our trade agreement has yet to be signed off on. In yesterday’s action the Corn market teeter-tawtered all day eventually at the end of the trading day the December contract managed to close a penny and a half higher. In the overnight electronic session the December Corn is currently trading at 371 ½ which is 1 ¼ of a cent lower. The trading range has been 373 ¼ to 370 ¾.
On the Ethanol front Iowa Gov. Kim Reynolds expressed optimism about negotiations on the biofuel mandate but she said she wants to see the final version on paper. She went on to say her side will continue to reach out to the administration. Another quote, “But I can take them at their word. It was a really, really good meeting with good dialogue and ideas committed to farmers.” There were no trades in the overnight electronic session. The October Ethanol settled at 1.374 and is currently showing 1 bid @ 1.369 and 1 offer @ 1.383 with declining Open Interest at 214 contracts.
On the Crude Oil front if it is no risk on with Iran flexing it’s muscles on free trade in the Strait of Hormuz, the Saudi’s underscoring the damage to their Oil infrastructure after the attacks we now have to worry about and Act of God which Tropical Storm Imelda wreaking havoc in Texas hurting our Energy infrastructure. I would expect a higher close today with many investors not wanting to be short going into the weekend. The October contract expires today. In the overnight electronic session the November contract is currently trading at 5869 which is 50 points higher. The trading range has been 5892 to 5833.
On the Natural Gas front the market is coming in a tad higher after getting slam-dunked on a bearish EIA Gas Storage number. In the overnight electronic session the October Natural Gas is currently trading at 2.548 which is 1 cent higher. The trading range has been 2.567 to 2.533.
Have a Great Trading Day!