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 day with LMI Logistics Managers Index Current at 5:30 A.M., 3-Month and 6-Month Bill Auction at 9:00 A.M., NY Fed Treasury Purchases 10 to 22.5 yrs. at 9:30 A.M., Export Inspections at 10:00 A.M., 52-Week and 21-Day Bill Auction at 10:30 A.M., 3-Year Note Auction at 12:00 P.M., Crop Progress at 3:00 P.M. and Total Vehicle Sales (Aug) at 7:00 P.M.
On the Hurricane Front Hurricane Larry which is located southeast of Bermuda and is expected to deliver a direct hit to the island. The storm is moving northwest at 9 knots and the cone has it turning north-northwest. Disturbance 1 is in the Gulf of Mexico and is expected to cross the southeastern United States later this week. It has a 30% chance of development in the next five days.
On the Corn Front last week’s pullback partially due to the concern with damage to the Gulf export facilities suffered in the New Orleans area. We have Export Inspections and Crop Progress today. Some traders feel we will be at $5 before Fridays Crop Production USDA Supply/Demand reports. In the overnight electronic session the December corn is currently trading at 523 ¼ which is ¾ of a cent lower. The trading range has been 526 ¼ to 521 ¾.
On the Ethanol Front Radico Khaitan India’s largest manufacturer of Indian-made liquor said the government committed to achieve 10% ethanol fuel grade in petrol by 2022 with supply of 400 core litres of ethanol. Should hike prices on alcohol it said in it’s last annual report. The futures markets are currently showing zero open interest.
On the Crude Oil Front oil prices again fall with demand an never ending changing saga driving peaks and valleys. With Saudi Arabia dropping prices to the market did not add any support. In the overnight electronic session the October crude oil is currently trading at 6803 which is 128 points lower. The trading range has been 6948 to 6764.
On the Natural Gas Front the market has been trading at in a chop after the futures hit a 52-week high. European natural gas hit new highs as Russia’s output dips. In the overnight electronic session the October natural gas is currently trading at 4.681 which is .031 lower. The trading range has been 4.774 to 4.557.
Have A Great Trading Day!