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 start off this morning with MBA Mortgage Applications (04/SEP) and MBA 30-Year Mortgage Rate (04/SEP) at 6:00 A.M., U.S Redbook YoY & MoM (05/SEP) at 755 A.M., JOLTs Job Openings (JUL) at 9:00 A.M., 10-Year Note Auction at 12:00 P.M., and API Energy Stocks at 3:30 P.M.
The National Hurricane Center has issued advisories for Tropical Storm Paulette and Tropical Depression Rene that could affect the Gulf region later this week or weekend. There is another Disturbance moving west northwestward towards the coasts of South & North Carolina. While another Disturbance expected to form a Tropical Wave emerging off the coast of Africa Thursday.
On the Corn front Illinois is turning to harvest as the pasture quality is dropping on corn and soybeans. The USDA reported 23% of the crop reached maturity and 86% of the crop is dented. Corn is rated 70% good-to-excellent and the percentage of good-to-excellent pasture conditions have dropped 20% week to week down to 42%. In the overnight electronic session, the December corn is currently trading at 360 which is 1 and ¾ of a cent lower. The trading range has been 361 to 358 ¼.
On the Ethanol Front Quota row has put Brazil’s ethanol sector on alert and the sugarcane farmers are concerned as well. Nobody wants to see a tariff for tariff battle on goods, and the Brazilian Sugarcane farmers voiced those concerns weeks ago. There were no trades posted in the overnight electronic session. The October contract settled at 1.306 and is currently showing 1 bid @ 1.309 and 2 offers @ 1.350 with Open interest at 42 contracts.
On the Crude Oil front the Saudi’s crushed the U.S. crude oil prices again. Stating in October price for Asian and U.S. shipments will be lowered. The Saudi’s want to lower the country’s benchmark as Chinese imports have weakened after months of massively stockpiling. In the overnight electronic session, the October crude oil is bouncing back from the shock and is currently trading at 3744 which is 6i8 points higher. The trading range has been 3762 to 3616. Remember the API’s later today could still show draws and with the 1 Tropical Storm and 1 Tropical Depression that at this point is a threat to the Gulf region.
On the Natural Gas front Californian residents are feeling it firsthand when government bans the use of coal, fossil Fuels, (etc.). With their intense heatwave not able to meet demand of this heatwave and the infrastructure not in place with solar and wind power only to drum up so much energy, and not enough to satisfy demand. The recent change to cooler temperatures in some parts of the lower 48 has this market divide on where we o next now that we are past Labor Day. In the overnight electronic session, the October natural gas is currently trading at 2.426 which is .o26 higher. The trading range has been 2.435 to 2.346.
Have A Great Trading Day!