Bracing For Hurricane Sally. The Corn & Ethanol Report

On the corn front, we may be seeing harvest pressure or are we. With rising Open Interest in the rally and a slow cash market, while Funds remain net-long. Traders will be looking at exports as the Trade Deal with China has that country obliged to purchase more product and Mexico has been a steady purchaser in this market. After a tumultuous August that saw losses in crop and yields this could be a different autumn in the U.S. market. In the overnight electronic session, the December corn is currently trading at 364 ¾ which is 1 ¼ of a cent lower. The trading range has been 365 ¾ to 361 ¾.

On the ethanol front, refreshing headlines have had a positive spin and the hope is the good news will continue as ethanol producers scratch and crawl to get back to last year's production levels. I believe this pandemic made producers more resourceful and utilize what other opportunities exist to this market other than our gas tanks. There were no trades posted in the overnight electronic session. The October ethanol settled at 1.306. The market is currently showing 1 bid @ 1.290 and 2 offers @ 1.340 with Open Interest at 42 contracts.

On the Crude Oil Front changing stories from the International Energy Agency (IEA) on supply and demand issues and a surprise API number which showed crude stocks down 9.517 million barrels, that was expected to show a build of 1.271M, Cushing dropped to -0.798M versus a build of 2.608 last week. These numbers show me demand is back and supplies are low after suffering through Hurricane Laura, and now we will monitor the disruptions Hurricane sally will cause. In the overnight electronic session, the October crude oil is currently trading at 3914 which is 86 points higher. The trading range has been 3942 to 3835. After today’s EIA Energy Stocks number, if bullish…. Do we punch through $40 a barrel?

On the Natural Gas Front Hurricane Sally has the market on edge. Waiting to see how bad the disruptions in Louisiana that what it can bare or will this slow-moving storm cause more demand destruction knocking out electricity in several states and counties along her path. One thing is for sure this storm will keep traders on their toes or on their heels today and tomorrow. In the overnight electronic session, the October natural gas is currently trading at 2.375 which is .013 higher. The trading range has been 2.389 to 2.352.

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