Corn And Ethanol: Energies And Grains Are Market Movers
Source: By Dan Flynn, Investing.com • Posted: Monday, October 19, 2020
On the ethanol front Production and Stocks were up on the week. The Renewable Fuels Association said volume of gasoline supplied to the market was lower than last week but refiners’ imports were higher. This is a telling sign the industry is looking ahead and past 2020 with lessons learned throughout the pandemic, there is other ways to achieve a profit center. Global demand is increasing while the ethanol industry found new uses to market this product. There were no trades posted in the overnight electronic session. The November ethanol settled at 1.430 and is currently showing 1 bid @ 1.411 with 0 offers with Open Interest 66 contracts.
On the Crude Oil Front, the majors are playing it cool, not ready to make a move to invest further on infrastructure as the Americans are focused on the election less than three weeks away. OILPRICE.com Dan Doyle, who is also the president of Reliance Well Services, a hydraulic fracturing company based in Pennsylvania, and spelled it out perfectly that a Biden Presidency could end the oil boom. The facts are so telling, as if you look at the past administration and were not helpful to the Energy Sector. In the overnight electronic session, the November crude oil is currently TRADING AT 4059 WHICH IS 37 POINTS LOWER. The trading range has been 4105 to 4029.
On the Natural Gas Front prices have been supported with U.S. LNG exports picking up and colder weather we have just begun to realize will boost heating demand. Although the market becomes choppy near the highs and lows, I believe we will shortly see a running of the bulls. I also believe the boots on the ground; the producers can’t wait until the election is election is over so they can get their bearings straight on a boom or gloom. In the overnight electronic session, the November natural gas is currently trading at 2.801 which is .026 higher. The trading range has been 2.810 to 2.759.