The API showed builds in Crude Oil stocks once again showing builds of 4.1 million barrels, which again I wonder where this oil is coming from. Ships tired of running circles with no destination in the Gulf of Mexico? Just an idea. Cushing Oklahoma again kept the bulls in play showing a draw of 750 thousand barrels. These numbers are showing me that we are not looking at the big picture. With the current geo-political events on the stage with another war or military action scraping to erupt on any part of the globe. You must ask yourself, “are we really in an oil glut?” This morning’s EIA data may show a sign that the market is oversold. In the overnight electronic session the December contract is currently trading at 4352 which is 32 points higher. The trading range has been 4372 to 4306 so far. BIG OIL Companies stock shares continue to slide just like the U.S. jobs continue to slide at an alarming rate. Who is profitable in this scenario? Not the U.S. people or taxpayer.
On the corn front the market is trading a little easier with the December contract currently trading at 378 which is 2 cents lower. The trading range has been 380 ¾ 377 ¼ so far. Harvesting coming to a close and wet weather making cold wet fields of what is left to harvest and yields and movement of crop purchases.
On the Ethanol front the November contract posted a trade at 1.583 which is .003 of a cent higher in the overnight electronic session. Kind of a surprising trade given production and demand numbers.
On the natural gas front we have Last Trading Day in the November contract. In the overnight electronic session the November contract is currently trading at 2.068 which are .024 cents lower. The trading range has been 2.104 to 2.040 so far. My advice to anyone holding a position in the November contract with expiration today is liquidate or rollover as soon as possible. Remember, today the Fed speaks and in the words of Judge Smails (ted Knight) in Caddy shack, “Are you a good Danny or a bad Danny”? Will we have a “Dovish Fed or a Hawkish Fed”?