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 kick off the day with Challenger Job Cuts (AUG) at 6:30 A.M., Initial Jobless Claims (29/AUG), Jobless Claims 4-Week Average (29/AUG), Unit Labour Cost QoQ Final (Q2), Nonfarm Productivity QoQ Q2, Export Sales, Imports and Exports at 7:30 A.M., Market Composite PMI Final (AUG) at 8:45 A.M., ISM Non-Manufacturing Index at 9:00 A.M., 4-Week and 8-Week Bill Auction Fed Evans Speech at 12:00 P.M., and Dairy Products at 2:00 P.M.,
On the Hurricane front, we have Tropical Storms Nana and Omar are close to the U.S. shores but do not pose a threat at this time. Nana may hit inland along Belize and move inland avoiding the U.S. Gulf Coast. Meanwhile, there are two more Disturbances off the coast of Africa with eastward movement that could pose a threat to the U.S. Gulf coastlines. We will keep you posted of the threats in the coming days.
On the Corn front, Brazil’s domestic corn prices have risen, and their opening stocks were 30% lower than last year following record highs of exports last year. Rio Grande do Sol, Parana, Brazil’s second largest corn producer was hit with unfavorable weather conditions which delayed their 2nd harvest. They also suffered from the severe drought of 2019-2020 and impacted inventories which pushed prices higher. After a Full Moon not a Harvest Moon you could see what a beautiful picture if you were out in the country, the Moon so close to Earth not seen since 2006, With global prices rising and Funds net long, will we see harvest pressure this year? In the overnight electronic session, the December Corn is currently trading at 356 ¾ which is 2 cents lower. The trading range has been 359 to 356 ¼.
On the Ethanol front, the September contract expires today. Still a lot of movement and shaking with regulations adopted before this pandemic which needs a commonsense overhaul. There were no trades posted in the overnight electronic session. The October ethanol settled at 1.306 and is currently showing 1 bid @ 1.220 and 1 offer @ 1.330 with Open Interest climbing to 43 contracts.
On the Crude Oil front, the market is slumping early but in a holiday week chop. China is importing oil at record levels and also consuming at record levels. The market will eventually see that it is in under- valued mode. And when the fundamentals become realized, who would have thought this market traded negative in a few months ago. In the overnight electronic session, the October crude oil is currently trading at 4134 which is 17 points lower. The trading range has been 4179 to 4022.
On the Natural Gas front, the market top step months are trading higher while the deferred are lower. Traders are keeping an eye on the November elections and see what government will do to ease the burden of this industry or pile on more regulations. In the overnight electronic session, the October natural gas is currently trading at 2.531 which is 4 ½ cents higher.. The trading range has been 2.567 to 2.455.
Have A Great Trading Day!