We Remain Long November Crude

This week the EIA (Energy Information Administration) reported 1.9 million barrels were added to supply which surprised the market who expected a draw-down in  supply.  Despite this, we remain Long November Crude as our expectations are that prices will continue their upward march, as the  Iranian sanctions soon take effect.

Oil Volatile Ahead of OPEC Meeting

It was a volatile session Thursday in the Crude market as the November contract reached new Highs of 71.35 before falling back and Closing at 70.32.    Much of this volatility is likely due to traders squaring positions ahead of this Sunday’s OPEC meeting in Algeria and the Baker Hughes rig count due out later today.

We continue to trade this market to the Long side.

Corn Continues to Decline As Harvest Begins

December Corn declined to reach new lows amid recent news of over-abundance of stock and the commencement of US harvests.  Despite this decline however farmers are reluctant to sell below $3.50, the level at which they earn an acceptable return for their product.

Although we remain short this market,  we expect to see a bounce in this market as supply continues to dry-up at these low price levels.  Given the degree to which this market has sold-off, a bounce may occur with even the slightest hint of positive news.  If this occurs we will consider taking profits and riding the Long bounce.