Tropical Storm Nate the Latest Headline. The Corn & Ethanol Report 10/06/17

We kick off this Friday morning with the monthly Unemployment data and Wholesale Trade at 7:30 A.M. followed by Consumer Credit at 2:00 P.M. Investors are weighing in on the threat of Tropical Storm Nate which is on the minds of investors bringing back the reality of fundamentals to the Crude Oil market. Nate’s current cone has him making landfall early Sunday morning in the Louisiana, Mississippi, Alabama and Florida Panhandle in the Gulf region. Nate is currently is moving with maximum sustained winds at 40 knots moving north-northwest at 12 knots. Mother Nature has shown this year she not only has a good curveball but a decent slider to match her fastball. Forecasted rains in certain areas of Illinois, Iowa, Kansas, Minnesota, Missouri and Wisconsin should slow the good start on harvest as a whole. Also heavy rains are forecasted for the eastern Corn Belt in the next week. In the overnight electronic session the Grain Complex still seems to be asleep at the wheel with the higher dollar and nasty weather in the U.S. and Brazil. The December Corn is currently trading at 349 ¾ which is ¼ of a cent higher. The trading range has been 350 ¾ to 348 ¾.

On the Ethanol front the market was quiet in the overnight electronic session again with no trades posted. The November contract settled at 1.438 and is currently showing 1 bid @ 1.421 and 1 offer @ 1.437 with Open Interest at 1,097 contracts.

On the Crude Oil front the market is currently free-falling from yesterday’s rally. Could this be algorithms or a headline Tropical Storm Nate has been downgraded and may not rear his ugly head in the Mississippi Delta? The November Crude Oil is currently trading at 4970 which is 109 points lower. The trading range has been 5082 to 4962 so far.

On the Natural Gas front the market just seems to want to trade range bound even after a bullish EIA Gas Storage number yesterday. In the overnight electronic session the November contract is currently trading at2.898 which is 2 ½ cents lower. The trading range has been 2.917 to 2.887.

Have a Great Trading Day!
Dan Flynn
Questions? Ask Dan Flynn today at 312-264-4374

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