It is the same old song since July that many earth shattering events shook the global markets and it just seems to keep whistling down the road. Will the Fed raise interest rates in September? Is China's economy faltering? Weak factory data from China changed the hearts and spirits from Monday's turnaround that reverberated enthusiasm around the globe. However, weak Asian factory orders played yet another part from and upbeat mode to doom and gloom. We will bounce back on this volatility and as long as you're not shy to bank profits quickly and adjust to the mood swings of the market you will be ahead of the game.
This morning the U.S. markets will have reports on Construction Spending and ISM Manufacturing Index followed later this afternoon by the weekly API Energy Stocks data.
On the corn front, in the overnight electronic session the September contract is currently trading at 361 which is 2¾ cents lower at this writing. The trading range has been 362½ to 360½ so far. Harvest pressure aside I believe we will see another spike in prices in this market this fall.
On the ethanol front, the October contract is currently trading at 1.441 which is .007 of a cent lower in the overnight electronic session. The trading range has been 1.449 to 1.441 so far. This market is currently feeling the pressure as well with the fundamental news and the frequency of the volatility.
On the crude oil front, the October contract is currently trading at 4772 which is 148 points lower in the overnight electronic session. The trading range has been 4819 to 4702 so far in the early going. I do anticipate fears to subside in this trading session and see the market rally back barring any ingenious comments from the divide Fed Chairman.
On the natural gas front, the market is holding its own eyeballing which was downgraded to Tropical Storm Fred. It did change paths and is now moving west-northwest at 10 knots and being trickier than Freddy Krueger people in the Gulf of Mexico can attest how these storms can be highly unpredictable which is showing in the price activity this morning's action. In the overnight electronic session the October contract is currently trading at 2.696 which is .007 of a cent higher. The trading range has been 2.696 to 2.678 so far. Investors will be tracking Fred's path even though he seems well on the other side of the pond.