Dan Flynn is the writer of The Corn & Ethanol Report, a daily market letter covering grains, energies, and various global issues that are the driving force and backbone of the commodity markets. Contact Mr. Flynn at (312) 264-4374
We kickoff the 1st day of October with Construction Spending and ISM Manufacturing Index at 9:00 A.M., Cotton System, Fats & Oils and Grain Crushing’s at 2:00 P.M. Followed by the API Energy Stocks at 3:30 P.M. On the Corn front, we spiked on the Grain Stocks report showed a much lower carryover than expected. Which had traders and farmers alike say, it’s about time you grasp the reality of the situation at hand. Corn is 14% harvested but with more rains and wet weather on the way plus cooler temperatures should slow harvest even further and bring maturity scares back into the market. As we our behind across the board in this year’s crop. In the overnight electronic session the December Corn is currently trading at 385 ¾ which is 2 ¼ cents lower. The trading range has been 388 to 385 ¼.
On the Ethanol front, a University of Queensland-led study has revealed that future demand for Ethanol biofuel could expand Sugarcane farming land in Brazil to 5 million hectares by 2030. Farmers remain at odds with the EPA and are giving President Trump reasonable time to fix the agreement while they are well aware with trade deal with China, the short-term pain is worth a long-term fair trade agreement. In the overnight electronic session the November contract is currently trading at 1.484 which is unchanged. The trading range has been 1.485 to 1.484. The market is currently showing 2 bids @ 1.455 and 1 offer @ 1.489 with 2 contracts traded and Open Interest at 475 contracts.
On the Crude Oil front, we have the API Energy Stocks at 3:30 P.M. and whispers abound of larger draws after last week’s surprise build. Storms in the Atlantic clouded the accurate count of barrels. We also have yet to see if there will be any void in Saudi exports as we fear they will not be able to refine their Oil production to Light Sweet Crude. In the overnight electronic session the November Crude Oil is currently trading at 5465 which is 58 points higher. The trading range has been 5484 to 5417.
On the Natural Gas front the market is trading in a small range. Weather changes could lead to a spike in prices. The November contract is currently trading at 2.320 which is 1 cent lower. The trading range has been 2.334 to 2.302.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374