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 week with NAHB Housing Market Index (Sep) at 9:00 A.M., NY Fed Treasury Purchases 7 to 10 yrs. at 9:30 A.M., Export Inspections at 10:00 A.M., 3-Month & 6-Month Bill Auction at 10:30 A.M., Crop Progress at 3:00 P.M. and UN General Assembly.
On the Hurricane Front Tropical Storm Peter may lead to flooding across Puerto Rico, the Virgin Islands and the Northern Leeward Islands. It is moving west-northwest at 12 knots. The current cone shows it will boomerang back in the Atlantic while Tropical Storm Rose off the coast of Africa has a 70% chance of formation on the next 5-days moving northwest at 13 knots. Disturbance 2 a couple hundred miles southeast of Newfoundland having a low threat of formation and Disturbance 1 off the coast of Africa and has a 70% chance of formation the next 5-days.
Ob the Corn Front the market has seen some significant changes in fundamentals and the hits keep rolling in this volatile market. The corn ending stocks to usage has gone from 13.75% to 7.4% the lowest on record. I believe even though China has boasted a record corn crop they will step in again at some point, they will definitely be in the market for grain feed for their pig crop minus the swine fever in the herds. The last few key production months the weather featured hot and dry conditions in significant corn growing regions, which should lend support. In the overnight electronic session the December corn is currently trading at 517 which is down 10 ¼ cents. The trading range has been 527 to 515 ¾.
On the Ethanol Front it is very quiet and no new fresh headlines to report. The futures market in ethanol remains in drydock and the September contract settled at 2.220.
On the Crude Oil Front September 20-24 is the first round of China’s crude oil auction. The market is backing off with demand a lesser concern with the Gulf output. Tomorrow is Last Trading Day in the October contract. In the overnight electronic session the November crude oil is currently trading at 7036 which is 146 points lower. The trading range has been 7193 to 6981.
On the Natural Gas Front Malaysia plans to open its borders to foreign workers to address the labor shortage at the oil palm estates. Spot LNG prices surge amid terminal outages and European gas prices. More bullish winter news in shoulder season, tight supplies drives up Indonesian coal prices. Energy is key across the globe. In the overnight electronic session the October nnatural gas is currently trading at 5.120 which is .015 higher. The trading range has been 5.140 to 4.920.
Have A Great Trading Day!