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 Core Inflation Rate YoY (OCT), Inflation Rate YoY, Inflation Rate MoM (OCT), Initial Jobless Claims (07/NOV), Jobless Claims 4-Week Average (07/NOV) Core Inflation Rate MoM (OCT) and Continuing Jobless Claims (31/OCT) at 7:30 A.M., EIA Energy Stocks at 10:00 A.M., 4-Week & 8-Week Bill Auction at 10:30 A.M., Fed Chair Powell Speech at 10:45 A.M., 30-Year Bond Auction, Fed Evans Speech at 12:00 P.M. Monthly Budget Statement (OCT), Fed Williams Speech at 1:00 P.M., and Dairy Product Sales at 2:00 P.M.
On the Hurricane Front Tropical Storm Eta update as of 3:00 CST has a danger area along portions of the Florida Gulf Coast from Longboat Key to the Suwannee River, including Tampa Bay. The storm cone has the storm moving northeastward and moving back out into the Atlantic. Tropical Storm Theta is moving east-northeast and moving close to the coast of Africa and looks to be no threat to the U.S. Coast. Disturbance 1 has an 80% chance of becoming a hurricane in the next 48 hours. It is located over the central Caribbean Sea and continues to produce a large area of showers and thunderstorms. It is expected to move slowly over the central and western Caribbean Sea. Regardless of development , this system is expected to bring heavy rainfall along with flash flooding in portions of Hispaniola the next day or so.
On the Corn Front we ended up lower in yesterday’s trading session with technical showing the rally of the USDA number, pushed the market in the overbought zone. Funds continued to buy and purchased 57,000 corn contracts leaving a net-long position of 364,000 contracts. Export Sales will be delayed until tomorrow. In the overnight electronic session, the December corn is currently trading at 413 ½ which is 3 ¾ cents lower. The trading range has been 418 ½ to 413.
On the Ethanol Front we will have ethanol production numbers today. No real hot new breaking news in this market either. There were no trades posted in the overnight electronic session. The December ethanol settled at 1.420 and is currently showing 2 bids @ 1.360 and 1 offer @ 1.480 with Open Interest at 49 contracts.
On the Crude Oil Front the market is playing the rangebound game swinging back and forth from positive territory to negative territory. This market is also watching Disturbance 1 to see if the storm makes into the Gulf of Mexico in the overnight electronic session the December crude oil is currently trading at 4142 which is 3 tics lower. The trading range has been 4194 to 4100.
On the Natural Gas Front San Francisco just banned natural gas in new buildings which is just another pitch for wind and solar. I must continue to remind these short-sided people that the power grid you have in play with solar and wind was no match for the fires to get enough water in needed places and the heat wave in LA could not support all the use in air-conditioning demand. Not a good move to change gears unless you have proof that this will sustain you in times of need. In the overnight electronic session, the December natural gas is currently trading at 3.009 which is .022 lower. The trading range has been 3.064 to 2.993.
Have A Great Trading Day!