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 of the day with Goods Trade Balance Adv. (Aug) and Wholesale Inventories MoM (Aug) at 7:30 A.M., Redbook YoY (25/Sep) at 7:55 A.M., S&P/ case/Shiller Home Price YoY & MoM at 8:00 A.M., CB Consumer Confidence, Fed Chair Powell Testimony and Richmond fed Manufacturing Index at 9:00 A.M., NY Fed Treasury Purchases 2.25 to 4.5 years at 9:30 A.M., 7-Year Note Auction at 12:00 P.M., Fed Bowman Speech at 12:40 P.M., Fed Bostic Speech at 2:00 P.M. and API Energy Stocks at 3:30 P.M.
On the Hurricane Front Disturbance 3 remnants of Peter has a 50% chance of formation in the next 48 hrs. The storm is moving northeastward at 10 mph. Hurricane Sam is currently moving northwest at 8 knots. We will be watching this storm as it will create swells affecting the Leeward Islands, Bahamas and Puerto Rico. The cone has it on a trek north-northwest missing the U.S. coast but sending life threatening surf and rip conditions. Disturbance 1 & 2 both have a significant chance of formation in the coming days located just off the coast of Africa. We will be monitoring these storms as well.
On the Corn Front China’s corn prices are expected to fall in 2021/22 on good supplies in feed grains in the new year with expectations of a bumper harvest from the new crop. U.S. Crop Progress on dented corn is at 97%, Matured 74% which is 10% higher than the five-year average. Harvested corn is at 18% vs. the 15% five-year average. Crop condition is rated 5% very poor, 19% poor, 26% fair, 47% good and 14% good to excellent. Export intentions were higher on rumors China is sniffing out U.S. corn prices. Just another twist in the game. In the overnight electronic session the December corn is currently trading at 538 ½ which is 1 cent lower. The trading range has been 541 ¾ to 535 ¾.
On the Ethanol Front Biofuels groups of the U.S. ethanol industry are calling the U.S. EPA to recognize low-carbon and high octane can reduce transportation greenhouse (GHG) emissions. We will see where we move forward from here. There were no trades or open interest in the ethanol futures again.
On the Crude Oil Front the market is rolling on total risk with tight supplies in the energy sector and the cancellation of the Key Stone Pipeline XL is just one of many bird brained ideas from this administration to the energy sector alone. Remember the days of energy independence. Oh yes, that was last year. This moves not only put pressure on the energy industry but the U.S. tax payer and middle-class. In the overnight electronic session the November crude oil is currently trading at 7614 which is 69 points higher. The trading range has been 7667 to 7521.
On the Natural Gas Front today is Last Trading Day in the October contract. This market is rolling again with shortage concerns in the U.S. and Europe. This could rise U.S. exports of LNG along with fears of a cold U.S. winter and an active 2021 hurricane season. In the overnight electronic session the November natural gas is currently trading at 6.060 which is 0.321 higher. The trading range has been 6.318 to 5.777.
Have A Great Trading Day!