Natural Gas Eyes EIA Storage Data
Dan Flynn | Aug 17, 2017 09:29AM ET
Rains Make Grains
We kickoff this morning with Export Sales and Initial Jobless Claims at 7:30 A.M. followed with Capacity Utilization, Industrial Production at 8:15 A.M. and EIA Gas Storage at 9:30 A.M. The Grains are trading higher in the overnight electronic session. The complex is getting a bounce after being heavily sold in prior trading sessions. Another factor is a forecasted cool front that could further support this dead cat bounce.
There will be more crop surveys predicting lower yields; however, most investors are banking that the carryover will have the upper hand in any possible explosion of buyers in the marketplace. Another supporting factor is lack of Brazilian and U.S. farmer selling at these price levels. In the overnight electronic session the September Corn is currently trading at 353 ½ which is 1 cent higher. The trading range has been 353 ¾ to 352 ½.
On the Ethanol front there were no trades posted in the overnight electronic session. The September contract settled at 1.5331 and is currently showing 3 bids @ 1.523 and 2 offers at 1.547 with declining Open Interest at 497 contracts. The October contract Open Interest has surged ahead in rollover time to 764 contracts.
On the Crude Oil front the market is down again even after consecutive weeks with huge draws in Stocks. It is just a matter of time when the sleeping giant wakes up and we will near immediately feel the pinch at the pump as we will have a mass exodus of shorts in the market. In the overnight electronic session the September Crude Oil is currently trading at 4656 which is 22 points lower. The trading range has been 4695 to 4652.
On the Natural Gas front we have the weekly EIA Gas Storage where we are expecting an injection build of 50 billion cubic feet (bcf). The real story investors are keeping a keen eye on is the tracking of 3 Tropical Storms in the Atlantic which 2 of the 3 have been upgraded by the National Hurricane Center and those 2 show a current path directly headed into the Gulf of Mexico. This will create disruptions and the fate of these storms could make a direct hit in the Henry Hun neighborhood. This could spark a rally as we head into the weekend. In the overnight electronic session the September Natural Gas is currently trading at 2.880 which is 1 cent lower. The trading range has been 2.899 to 2.868.
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