We started off the day with New Home Sales MoM (Aug), New Home Sales (Aug), Fed Chair Powell Speech, Fed Clarida Speech, and Fed Bowman Speech at 9:00 A.M., NY Fed Treasury Purchases 4.5 to 7 yrs. at 9:30 A.M., Baker Hughes Oil & Total Rig Count at 12:00 P.M., Cattle on Feed and Hogs & Pigs at 2:00 P.M.

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On the hurricane front, we must watch Hurricane Sam. The storm is moving west at 13 knots and if the cone is correct, it should change paths and move northeastern course missing the Dominican Republic and the Bahamas but poses a threat to Bermuda as it currently forecasted a collision course is expected next week also threatening the U.S. eastern seaboard. Meanwhile, Disturbance 1 and 2 now does not look to pose a threat to the U.S. mainland, however, we will be watching for any sudden changes in these storms.

On the corn front, export sales were weak again but the market shook it off after the latest fears of China’s real estate default. The market is also weighing other headlines in South America’s weather and crops for export,  while the U.S. market is focusing on yields per acre. No carryover means no margin for error. Next Thursday’s Grain Stocks and Small Grains Summary could be a game-changer.  Also looking ahead to the October 12^th Crop Production, U.S. Supply/Demand, and WASDE data. In the overnight electronic session, the December corn is currently trading at 526 ½ which is 2 ¾ cents lower. The trading range has been 528 ¾ to 525.

On the ethanol front, higher prices in energy is making ethanol blending a more attractive alternative which offered support to the corn market in yesterday’s trading session. Heading into a forecasted cold winter energy demand should be abundant. Again the future in ethanol is attracting no participants, however, this should change as prices increase.

On the crude oil front prices have risen with recent draws and demand on the upswing. Hurricane season has been active and could lead to further disruptions and that will only add fuel to the fire with climbing prices and risk concerns. Now that we are no longer energy independent and no solid energy policy, I see $80 crude oil prices in the not-so-distant future. In the overnight electronic session, the November crude oil is currently trading at 7334 which is 4 tics higher. The trading range has been 7366 to 7281.

On the natural gas front, the market is rolling on the increase in demand in both domestic and overseas. Europe has their eggs in one basket relying on exports from Russia. LNG prices have gone up in Europe as Russia is holding back exports driving prices higher and make imports from the U.S. a more attractive alternative. Remember Russia could turn off the spigot at any time. In the overnight electronic session, the October natural gas is currently trading at 5.028 which is .052 higher. The trading range has been 5.143 to 5.016.