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 Markit Composite PMI Final (SEP), Markit Services PMI Final (SEP) at 8:45 A.M., Fed Barkin Speech, ISM Non-Manufacturing Index at 9:00 A.M., Fed Evans Speech at 9:45 A.M., Export Inspections at 9:00 A.M., Fed Evans Speech at 9;45 A.M., Export Inspections 10:00 A.M., 3-Month & 6-Month Bill Auction at 10:30 A.M., Dairy Products at 2:00 P.M., Fed Bostic Speech at 2:15 P.M., and Crop Progress at 3:00 P.M.
On the Hurricane Front as of Sunday 4:00 P.M. C.D.T. Tropical Storm Gamma is somewhat stationary over the Yucatan Peninsula with sustained winds at 50 knots. This could turn out to be more dangerous churning in the Gulf. And another storm we need to watch which has a potential to form a Tropical Cyclone, 26mis located south of Cuba and mobbing west-northwest at 9 knots.
On the Corn Front the market is holding a mostly steady pattern with harvest expected to show rapid progress. Fears of the early frost are no longer with temperatures forecasted to rebound back into the 70’s this week. Funds added to their net long positions expecting China to be stepping back and in for more purchases. Argentina and Brazil do not have the foreign reserves to be a major exporter currently. In the overnight electronic session, the December corn is currently trading at 379 ½ which is a ¼ of a cent lower. The trading range has been 382 ¼ to 378 ¼.
On the Ethanol Front it is Last Trading Day for the October contract. The ethanol industry which is aware of the decline in U.S. fracking which made the U.S. an exporting superpower, and the difficulties in their industry, know that ethanol is here to stay. There were no trades posted in the overnight electronic session. The November ethanol settled at 1.360 and is currently showing 2 bids @ 1.333 and 1 offer @ 1.390 with Open Interest at 69 contracts.
On the Crude Oil Front more risk on fears in the market with the two storms moving to the Gulf of Mexico and could pack a punch. Another sad headline was that Venezuela is a long way and maybe never be the exporter of oil it once was. Foreign investors are sheepish investing because of the upheaval in the once richest country in the southern hemisphere to a poor country that started at the reigns of Socialist dictator Hugo Chavez. In the overnight electronic session, the November crude oil is currently trading at 3871 which is 166 points higher. The trading range has been 3881 to 3700.
On the Natural Gas front the market is rallying on the risk on the crude oil market is with the fears to the Gulf region, but also a natural gas pipeline explosion in Trinity River, Texas, There were residential evacuations but the word on the street is that it is under control. In the overnight electronic session, the November natural gas is currently trading at 2.521 which is .093 higher. The trading range has been 2.546 to 2.446.
Have a Great Trading Day!