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 Export Sales, Initial Jobless Claims (07/Aug), Jobless Claims 4-Week Average (07/Aug) PPI MoM & YoY, Continuing Jobless Claims (31/Jul) and Core PPI MoM and YoY at 7:30 A.M., NY Fed Treasury Purchases TIPS 1 to 7.5 yrs. and EIA Gas Storage at 9:30 A.M., 4-Week & 8-Week Bill Auction at 10:30 A.M., WASDE Report at 11:00 A.M., and 30-Year Bond Auction at 12:00 P.M.
On the Hurricane Front Tropical Storm Fred is currently located roughly 40 miles west-southwest of Great Inagua, Bahamas. The storm looks to be a threat to the U.S. coastline in the Gulf of Mexico. The current cone has the storm entering the Gulf and moving up the Florida coastline. However, these storms can be tricky. Also, Disturbance #1 is churning in the Atlantic and gaining strength while it looks to be following Fred’s path. Stay tuned for further developments.
On the Corn Front we showed decent Export Sales but the tale of the tape will be at 11:00 A.M. CST where most farmers and traders will be concentrating on the yield number. I do expect some shake, rattle & roll or the shake and bake when the numbers are released and realized. In the overnight electronic session the December corn is currently trading at 557 ¾ which is 1 ½ of a cent lower. The trading range has been 560 ¾ to 555 ¾.
On the Ethanol Front we are experiencing a lull in the ethanol futures market. All signs continue to show this is a growing market, like the calm before the storm. When demand dictates what supplies are, you will see more participation in the futures market. In the overnight electronic session there was no activity once again. The September contact settled at 2.220 while showing no market and zero Open Interest.
On the Crude Oil Front this market is no different than the grains bias concentrating on demand fears with the Coronavirus Delta, and will OPEC+ agree to slow down production to keep the market in balance as the market continues to digest the news with supply and demand. In the overnight electronic session the September crude oil is currently trading at 6903 which is 22 points lower. The trading range has been 6962 to 6868.
On the Natural Gas Front the market is trading lower going into the EIA Gas Storage data. The September contract is currently trading at 4.023 which is .036 lower. The trading range has been 4.067 to 3.993. Analysts polled by Thomson Reuters estimate builds ranging from 42 bcf to 58 bcf with the median injection of 49 bcf. This compares to the one-year build of 45 bcf and the five-year average injection at 42 bcf.
Have A Great Trading Day!