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 the day with Consumer Inflation Expectations (AUG) and Export Inspections at 10:00 A.M., 3-Month and 6-Month Bill Auction at 10:30 A.M., and Crop Progress at 3:00 P.M.
On the Hurricane front Tropical Storm Sally is still too early where she will strike but landfall with dangerous life-threatening storm surge has warnings from Louisiana, Mississippi, Alabama and Florida coast up into the Panhandle. This storm is no different, being very tricky when and where she will strike. One thing is for sure there will be maritime disruptions and flash flooding in the Gulf coast states. Disturbance 1 is moving slowly southwestward over the western Gulf of Mexico and presently looks to make landfall on the Mexico coast in the coming days. Hurricane Paulette is moving west-northwest with the cone shifting and her back out into the Atlantic missing the U.S. coastline, Let’s hope. Tropical Depression Rene is moving west at 3 knots and it is still to early to predict the threats that this storm could pose. Tropical Storm teddy is moving west-northwest at 12 knots and the current cone has that storm moving north to Bermuda later this week. Depression 21 off the coast of Africa current cone has it a possible risk to the Gulf region, we will have more information later this week, tracking this storm And another Tropical Wave near the west coast of Africa is slowly developing and we will have it’s path information later today or tomorrow.
On the corn front Today is Last Trading Day on all September Grains. The USDA report on Friday showed U.S. corn stocks down more than a billion and a ½ bushels from August, but over 7 billion bushels from a year ago. World Ending Stocks were 306.8 (MMT) versus August 317.5 (MMT) and last year was pegged at 311.3 (MMT). U.S. corn production was 14.9 billion bushels versus August 15.28 (bb), while U.S. yield was pegged at 178.5 bushels per acre versus August 181.8 (bpa) In the overnight electronic session the December corn is currently trading at 370 which is 1 ½ of a cent higher. The trading range has been 371 to 368 ½.
On the Ethanol front President Trump announced on Saturday that he is trying to make ethanol more accessible and he will allow E15 available in E10 tanks with state approval. He also praised Sen. Joni Ernst’s, “relentless” fight for the biofuels industry. This is welcome news to the biofuel’s community, farmers, and the economy. Securing E15 year-round that the EPA last year cancelled the prohibited sales of E15 from June 1st to September 15th. There were no trades posted in the overnight electronic session the October contract settled at 1.306 and is currently showing 1 bid @ 1.206 and 1 offer @ 1.350 with Open interest at 42 contracts.
On the Crude Oil front the market does not seem to be affected with risk on with Tropical Storm Sally that has impacted the natural gas market so far. Tomorrow we will have API inventories and it will be interesting to see what those numbers say in the wake of more shipping disruptions in the coming weeks. In the overnight electronic session, the October crude oil is currently trading at 3713 which is 20 points lower. The trading range has been 3768 to 3685.
On the Natural Gas front we are trading risk on with Sally being a huge threat to the Henry Hub area and as the day goes by we will get further updates from the national Hurricane Center and the Louisiana Hurricane and Storm Damage Risk Reduction System. In the overnight electronic session, the October natural gas is currently trading at 2.373 which is 0.104 higher. The trading range has been 2.399 to 2.292.
Have a Great Trading Day!