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Market Comments: Petroleum futures are lower on Thursday trading.

In the latest DOE report, U.S. oil inventories increased by 3.6 million barrels in the week ended November 10h, above the forecast calling for a rise of 800,000 barrels.

Karoon Energy is expected to buy a stake in 2 U.S. oil gas fields for $720 million; they said the deal would increase its production next year by 57%-63%.

U.S. crude futures are trading in contango for the first two listed months as traders become more confident that supplies around the NYMEX delivery point at Cushing will be adequate and there will be no further depletion.

The U.S. Energy Information Administration has been implementing changes to the way it collects its data, and it has been challenging to understand what those changes mean for the traders who use the government agency's report to make critical decisions.

The U.A.E, one of the world's biggest exporters of fossil fuels, is attempting to position itself as a global carbon market leader as it prepares to host the COP28 climate talks.


According to the USDA, corn harvest is 88 percent complete vs. the five-year average of 86 percent. As for soybean harvest, it was reported at 95 percent complete vs. the five-year average of 91 percent.
The 8 to 14-day weather forecast, valid through November 28th, calls for a blanket of below-average temperatures to settle over most of the United States. Until this point, temperatures have been extremely mild, which has limited consumers from turning on the furnace, which has cut down on demand for propane. We are gearing up for peak propane demand season, but current supplies should be more than adequate to keep up with demand. The unknown in the future will be the extended weather forecast and whether supplies will be strained.
One of the outside markets the energy industry continuously keeps a watchful eye on is the value of the U.S. dollar; earlier in the week, values slipped 1 percent against major currencies after U.S. consumer price data showed the pace of inflation moderating; this has the potential to sway the Federal Reserve to not look at further interest rate hikes.
As mentioned the dollar did slip but is still holding well over the 99 low from back in early July.
U.S. service sector prices are rising more than twice as fast as the central bank's flexible average target of a little over 2 percent per year. Service sector prices increased at an annualized rate of 5.30% over the three months ending in October, while prices excluding rents were up 5.75%. Price rises slowed in October after accelerating sharply in September, consistent with weaker activity readings in manufacturing and service sector business surveys. The service sector is much larger than manufacturing, and services tend to be much more labor intensive, which makes inflation stickier:
With the calendar firming in November, most of the harvest and fieldwork have been wrapped up, and shed doors are closed. Attention can shift towards marketing this year's crop. The soybean market put in a harvest low near $12.50 but has been trending higher recently. Currently, prices are knocking on the door of $14.00, which is proving to be a significant resistance level. If prices penetrate this level, it would open the door to higher prices. Some of the current bullish momentum has been linked to some dry weather conditions in South America. We are still early in their growing season, so if a lack of moisture will continue through the winter months, it could continue to fuel higher prices.
RECOMMENDATIONS:
10/4/2023: Contract 10% of your spring/fall diesel needs.
10/4/2023: Contract 10% of your summer gasoline needs.
The information contained in this report is believed to be reliable but is not guaranteed to accuracy or completeness by MID-CO COMMODITIES, INC. or GROWMARK, Inc. This report is provided for informational purposes only and is not furnished for the purpose of, nor intended to be relied upon for specific trading in commodities herein named. This is not independent research and is provided as a service. As such, this is considered a solicitation.

We require all contracts, futures, and/or option orders be called into our office.

Bridget Chinowth/Melissa Grant/Brian Keith/Eugene McGillian
Jeff O’Brian/Jacqueline Witte/Scott Wilson

Energy Risk Management MID-CO COMMODITIES, INC   
Energy Risk Management
800-550-4820

Bridget Chinowth
309-557-6301
Melissa Grant
309-557-6080
Brian Keith
309-557-6304
Eugene McGillian
309-557-6388
Jeff O’Brian
309-557-6335
Jacqueline Witte
309-557-6313
Scott Wilson
309-557-6435
Energy Customer Care
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