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 kickoff the first day of September with MBA Mortgage Applications (Aug) and MBA 30-Year Mortgage Rate (27?Aug) at 6:00 A.M., ADP Employment Change (Aug) at 7:15 A.M., Market Manufacturing PMI (Aug)at 8:45 A.M., ISM Manufacturing PMI (Aug) Construction Spending MoM (Jul), ISM Manufacturing New Orders (Aug) , ISM Manufacturing Prices (Aug) and ISM Employment (Aug) at 9:00 A.M., EIA Energy Stocks at 9:30 A.M., NY Fed Treasury Purchases 7 to 10 yrs. at 10:00 A.M., Cotton System, Dairy Product Sales, Fats & Oils, and Grain Crushing’s at 2:00 P.M. and Total Vehicle Sales (Aug) at 7:00 P.M.
On the Hurricane Front Depression Ida is still driving up the east coast above Tennessee and West Virginia heading northeast. Tropical Storm Kate is moving west-northwest at 8 knots and does not look to be a threat to the U.S. Coast. Tropical Storm Larry is moving west at 17 knots and the current cone has this storm missing the Gulf Of Mexico and possibly missing the U.S. Coastline. We will keep you posted on this storm. And finally. Disturbance 1 has a 30% chance of hurricane formation in the next 48 hrs. to five days. This weekend heavy rains across portions of Central America and we will update if this becomes a threat to the Gulf of Mexico.
On the Corn Front the market traded lower in yesterday trading session with fears of a slowdown in the export market and loss of power at the gulf export terminals. Heading into harvest we have bearish and bullish news keeping the volatility in this market. And at the moment the bears have it. Funds were net sellers of 9,000 contracts yesterday and with export and yield problems in South America some traders believe this is a buying opportunity. In the overnight electronic session, the December corn is currently trading at 529 ¼ which is 5 cents lower. The trading range has been 536 ¼ to 526 ½.
On the Ethanol Front no new headlines to report with Ida stealing all the news. The futures market remains in dry-dock.
On the Crude Oil Front OPEC is meeting today and Iraq said to the cartel it is time to focus on renewable energies. This surprise threw a curveball, and it should be interesting to see the outcome of this meeting if they can agree to a common ground. Last night’s API had a mixed bag of tricks showing draws in crude -4.045M, Cushing builds of +2.128M, gasoline +2.711M and draws in distillates of 1.961M. Today’s EIA may mirror the API due to Ida.
Have A Great Trading Day!