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 PPI MoM & YoY (Aug), Core PPI MoM & YoY (AUG) at 7:30 A.M., Wholesale Trade Inventories (Jul) at 9:00 A.M., NY Fed Treasury Purchases 2.25 to 4.5 yrs., Crop Production, USADA Supply/Demand and WASDE reports at 11:00 A.M., and Baker Hughes Oil & Total rig count at 12:00 P.M.
On the Hurricane Front Larry continues to move north-northeast as advertised and looks like it will be missing landfall on northeastern states of the U.S.. Disturbance 1 has a 40% chance of formation in the next 48 hours and located over the southwestern Gulf of Mexico.
On the Corn Front were trading a little higher as we wait for the USDA and WASDE numbers. In yesterday’s action we saw the corn trade off their lows. The spike was due to a few of U.S. gulf elevators will have power back. This will allow access to damage and begin repairs. This is the news the market needed , that reconstruction in on the way and that will be a boon to shipping in the New Orleans area and the Mississippi. In the overnight electronic session, the December corn is currently trading at 511 ¼ which is 1 ¼ of a cent higher. The trading range has been 513 ¾ to 509 ¾.
On the Ethanol Front production moved higher for the first week gain since July. The domestic supply tightened for the third week in a row notching a 13-week low declining 720,000 barrels which is still 397,000 more than a year ago. No trades or activity in the ethanol futures market.
On the Crude Oil Front, we bounced higher on China’s decision to release oil from the strategic reserve and a slow return of production in the Gulf of Mexico following Hurricane Ida. In the overnight electronic session, the October crude oil is currently trading at 6942 which is 128 points higher. The trading range has been 6959 to 6768. $70 a barrel and above may soon become a reality.
On the Natural Gas Front prices are rising and we could see the highest prices in 13 years. Natural Gas prices have doubled this year. After being spoiled plenty of product and cheap prices we can expect an eye-opening experience with higher heating bills this winter. In the overnight electronic session, the October natural gas is currently trading at 4.985 which is .046 lower. The trading range has been 5.058 to 4.968.
Have A Great Trading Day!