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 NFIB Business Optimism Index (SEP) at 5:00 A.M., Core Inflation Rate YoY & MoM (SEP), Inflation Rate YoY & MoM (SEP), CPI and Real Earnings(SEP) at 7:30 A.M., IBD/TIPP Economic Optimism (OCT) at 9:00 A.M., Consumer Inflation Expectations (SEP), and Export Inspections at 10:00 A.M., 3-Month and 6-Month Bill Auction at 10:30 A.M., 119-Day Bill Auction and 43-Day Bill Auction at 12:00 P.M., and the IMF Virtual Annual Meeting.
On the Hurricane Front we are still not out of the woods yet after Delta. There is another Disturbance and wind indicates with a tropical wave located about 700 miles east of the Winward Islands and has become better defined. Movement is west-northwestward at 15 mph and has a 30% chance to form into a cyclone in the next 48 hours.
On the Corn Front with the Federal holiday Antifa ran out of Columbus statues to bring down so they went after Honest Abe and Teddy Roosevelt. But seriously, the market sold off with both morning or afternoon reports on exports and harvest which a bullish market needs to be stoked and continuously fed bullish news to carryon. That did not happen here, but we should see the numbers today and we may see traders come in with breath of fresh air and pick up where they left off last week. In the overnight electronic session, the grains are forging a comeback and when the numbers come out, we may see more bargain basement buyers. The December corn is currently trading at 390 ¾ which is 1 ¾ of a cent higher. The trading range has been 392 ¾ to 388.
On the Ethanol Front as COVID-19 brought a collapse in fuel demand across the U.S. forcing many ethanol facilities to either slow or halt production all together. More facilities are switching their focus to the hand sanitizer market as more than a temporary band-aid as we continue to cope and attempt to defeat the pandemic. These facilities are following companies like Pacific Ethanol, Green Plains, and Hightower Ethanol in boosting capacity to produce high-grade alcohol and take profits in this sector following those companies lead. There were no trades posted in the overnight electronic session. The November ethanol settled at 1.400 and is currently showing 1 bid @ 1.376 and 2 offer offers @ 1.460 with Open Interest at 71 contracts.
On the Crude Oil front prices started to rise on spot demand. New Delhi crude oil prices on Tuesday rose Rs 24 to Rs 2,913 per barrel as participants widened their positions on spot demand. On the Multi Commodity Exchange, crude oil for delivery rose by Rs 24, or 0.83%at Rs 2,913 per barrel in 3.253 lots. Analyst said rising of the bets by participants kept crude oil prices higher in futures trade. In the overnight electronic session, the November crude oil is currently trading at 4028 which is 85 points higher. The trading range has been 4044 to 3935.
On the Natural Gas Front, we are seeing profit raking this morning. Natural Gas Intelligence is reporting that Raymond James is predicting Henry Hub to finish near $4 in 2021. Traders will also be bracing for a cold winter.
And OILPRICE.com reports Middle East natural gas megaprojects face major risks. This risk is lack of infrastructure and the economic slowdown in the region and that is enough to hurt investment. In the overnight electronic session, the November natural gas is currently trading at 2.830 which is .051 lower. The trading range has been 2.866 to 2.784.
Have A Great Trading Day!