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 Wholesale Trade at 7:30 A.M., Wholesale Inventories (AUG) at 9:00 A.M., Crop Production USDA Supply/Demand and WASDE report at 11:00 A.M., Baker Hughes Oil and Total Rig Count at 12:00 P.M.
On the Hurricane Front as 4:00 P.M. C.S.T. Hurricane Delta movement is northwest at 10 knots with sustained winds at 100 knots. The cone on this pattern has not changed much according to the National Hurricane Center, and as expected the storm will hit parts of Texas, and the Louisiana Coastline and Mississippi will feel the brunt of the impact Delta will throw. Alabama should be under warning as well, as these storms could change course in a moment’s notice.
On the Corn Front we sold off after the position of strength ahead of today’s reports. Even with China’s weeklong holiday they were active buyers in the U.S. Ag market. They attempted to be quiet, but the market took notice, funds also added to their net long positions as well. This is not your average October harvest season. In the overnight electronic session, the December corn is currently trading at 390 ¾ which is 3 ¾ cents higher. The trading range has been 392 to 386 ½.
On the ethanol Front the market is waiting for the anticipated corn for ethanol use the USDA will supply at 11:00 A.M. The bid story in this market this week, which followed many weeks ago is how the industry adjusted to and took advantage of the pandemic by rolling hand sanitizers and disinfectants. In the overnight electronic session, the November ethanol posted a trade at 1.499 which is .005 higher. The market is currently showing 1 bid @ 1.375 and 2 offers @ 1.400. 2 contracts traded and Open Interest is at 77 contracts.
On the Crude Oil Front Tsvetana Paraskova with OILPRIVE.com reports that Saudi Aramco is doubling down on one of their worst crises ever. Because of COVID-19 and Saudi Arabia flooding the market with oil after sparring with Russia and attempts to crush the U.S. fracker. Crown Prince Mohammed bin Salmon’s timing could have not been worse. He has learned a second lesson in economics and now with lower profits and higher debt, he plans to diversify the Kingdom’s economy by 2030 by using the oil money Saudi Arabia gets. The market is weak this morning, but Hurricane Delta is ready to crash-land on the U.S. Gulf Coast which may change investors sentiment. In the overnight electronic session, the November crude oil is currently trading at 4075 which is 44 points lower. The trading range has been 4147 to 4065.
On the Natural Gas front the EIA Gas Stock numbers came in within expectations on analysts’ estimates. But Hurricane Delta is still expected to hurt infrastructure as the industry prepares for the winter months. In the overnight electronic session, the November natural gas is currently trading at 2.680 which is .053 higher. The trading range has been 2.693 to 2.618.
Have a Great Trading Day!