Last night’s API showed Crude Oil inventories up 4.7 million barrels and Gasoline up 1.75 million while Distillates had a draw of 940 thousand and Cushing, Oklahoma showed draws of 2 million barrels. And the stocks in Cushing could not save the day and the complex took a nose dive. In the overnight electronic session the December Crude Oil is currently trading at 4917 which is 79 points lower. The trading range has been 4951 to 4906. Hopefully this morning’s EIA Energy Stocks can bridge the gap.
On the Natural Gas front the forecasted warm weather this weekend had the bulls heading for the exits. However, I still believe this break to the downside is creating a great buying opportunity which will lead to a quality rally especially when the weather gets colder. The November contract expires tomorrow so we will change our focus to the December contract which is currently trading at 3.089 which is 6 cents lower. The trading range has been 3.136 to 3.081. Tomorrow we will have the weekly EIA Gas Storage data.
On the Ethanol front we will switch to the December contract as well as in the overnight posted a trade at 1.535 which is .001 of a cent lower with 4 contracts trade at that price and is currently showing 2 bids @ 1.515 and 1 offer @ 1.538. The Open Interest has also grown to 3,047 contracts versus November’s 1.538.
On the Corn front the rains should hold up harvest as we our getting very close to being complete but certain areas may be held up with a big track of soaking rain. In the overnight electronic session the December Corn is currently trading at 351 ¾ which is 1 cent higher. The trading range has been 351 ¾ to 349. In the early going the U.S. dollar is trading lower of the current highs and could resurrect buying in commodities.
Comments
Log in or sign up to join the conversation.