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 MBA Mortgage Applications (24/Sep) and MBA 30-Year Mortgage Rate (24/Sep) at 6:00 A.M., fed Harker speech at 8:00 A.M., Pending Home Sales MoM & YoY (Aug) at 9:00 A.M. EIA Energy Stocks and NY Fed Treasury Purchases 22.5 to 30 Years at 9:30 A.M., Fed Chair Powell Speech at 9:45 A.M., and Dairy Product Sales at 2:00 P.M.
On the Hurricane Front Disturbance 3 is moving northeastward in the Atlantic and pose a very little threat of formation, while Hurricane Sam is rolling along moving northwest at 8 knots just east of the Leeward Islands, Virgin Islands and Puerto Rico. Disturbance 2 has a small chance of formation the next 48 hrs., while Disturbance 1 has a 90% chance of formation in the next 48hrs. located several hundred miles south of the Cabo Verde Islands. The storm is expected to move west-northwestward at 10-15 mph. We will keep you posted on further developments.
On the Corn Front the market traded lower yesterday with no new sales to China after whispers they were pricing the U.S. market. Mexico maintained itself as a strong buyer. That coupled with weaker economic fears and harvest in full swing helped keep the market under water. We had Turnaround Tuesday for what that’s worth, so today is Wacky Wednesday with the markets treading water this morning. In the overnight electronic session the December corn is currently trading at 537 ¼ which is 4 ¾ cents higher. The trading range has been 538 to 533 ½.
On the Ethanol Front Sugar and engineering major Triveni Engineering & Industries plans to invest Rs 350 crore to double its alcohol manufacturing in the next nine months, as the company seeks to gain from the government’s push for ethanol blending in gasoline. That could get this market interesting but once again there is no Open Interest in the futures markets.
On the Crude Oil Front this market came off it’s highs with the negative economic data that had other markets in selling mode. Last night’s API numbers showed builds across the board with crude + 4.127M, Cushing +0.359M, gasoline + 3.555M and distillates + 2.483M. Those numbers offered little support as the market tested support last night, although the EIA data is at 9:30 A.M. which could show a little more bullish number. In the overnight electronic session the November crude oil is currently trading at 7476 which is 53 points lower. The trading range has been 7511 to 7374.
On the Natural Gas Front this market was also affected to the Interest Rate fears and did its nosedive from the highs as well. Which brought in panic selling on a day the October contract expired. The market is trying to gather itself but like the crude oil market it is still feeling pressure. In the overnight electronic session the November natural gas is currently trading at 5.708 which is 0.172 lower. The trading range has been 5.955 to 5.663.
Tune in tomorrow to Rural Radio tomorrow at 7:30 A.M. as we discuss what’s on tap for the trading Day on Channel 147 SiriusXM.
Have A Great Trading Day!