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 Pending Home Sales MoM & YoY (Jul) at 9:00 A.M., Dallas Fed Manufacturing Index (Aug) and NY Fed Treasury Purchases 7.5 to 30 yrs. at 9:30 A.M., Export Inspections at 10:00 A.M., 3-Month and 6-Month Bill Auction at 10;30 A.M., and Crop Progress at 3:00 P.M.
On the Hurricane Front after delivering a big blow with catastrophic damage to the Louisiana Coast. Whatever boots on the ground are tallying up the devastation if they can get to the area. Tropical Depression 10 is expected to churn in the Atlantic and the current cone is showing no threat to the U.S. Coastline as it moves north-northeast. A new Disturbance off the coast of Africa has a 60% chance forming into a hurricane in the next 48 hrs. It is currently moving west-northwestward at 10 to 15 mph.
On the Corn Front we are trading lower in this see-saw market again. News that we should have an abundant harvest is weighing on this market. I just do not see the yields adding up. But we should get an education when harvest begins and exports pick up. In the overnight electronic session the December corn is currently trading at 551 ¾ which is 2 cents lower. The trading range has been 558 to 548 ½.
On the Ethanol Front a chemistry breakthrough will make faster and cheaper ethanol to jet fuel. The PNNL-patented catalyst combined with a unique microchannel reactor can convert ethanol to a useful chemical that has multiple commercial uses. The ethanol futures remain in drydock at the moment.
On the Crude Oil Front the market is still assessing all of the damage caused by Ida. We have seen risk on and risk off in the market when reality has set in. In the overnight electronic session the October crude oil is currently trading at 6884 which is 10 points higher. The trading range has been 6964 to 6767.
On the Natural Gas Front prices are retreating as demand suffered a serious blow with over 1 million customers are without power after New Orleans suffered catastrophic transmission damage. We will keep you posted on further developments from damage control. In the overnight electronic session the October natural gas is currently trading at 4.326 which is .063 lower. The trading range has been 4.526to 4.275.
Have A Great Trading Day!