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 (01/Oct) and MBA 30-Year Mortgage Rate at 6:00 A.M., ADP Employment Change (Sep) at 7:15 A.M., EIA Energy Stocks and Ny Fed Treasury Purchases 10-22.5 yrs. at 9:30 A.M., Fed Bostic Speech at 10:30 A.M., and Dairy Product Sales at 2:00 P.M.
On the Hurricane Front Disturbance 1 located east of Florida in the Atlantic is expected to continue in a northerly path with little chance of formation.
On the Corn Front we are finally starting to see movement in the exports of corn. Mexico has been a steady buyer and increasing purchases. Brazil will not be able to fill the gap in shortages going into winter. Again we are really concentrating on yields and China playing possum may have a weak hand in manipulating prices. In the overnight electronic session the December corn is currently trading at 559 ¾ which is 2 ¼ cents lower. Traders will be looking ahead to next Tuesday’s Crop Production USDA Supply/Demand and WASDE numbers.
On the Ethanol Front U.S. DGGS exports hit a 6-year high as Canada remains the top destination with South Korea, UK, Peru, Nigeria, Netherlands and Mexico’s volumes grow. This could be the wake up call the ethanol futures markets have been waiting for. The October contract expired yesterday with little fanfare.
On the Crude Oil Front talk of Saudi Aramco lowering prices for crude oil to destinations other than the U.S. This shows me they are concerned about market share. Today’s EIA could rekindle bullish forces even with a higher U.S. dollar. In the overnight electronic session the November crude oil is currently trading at 7803 which is 88 points lower. The trading range has been 7978 to 7777.
On the Natural gas Front the market is seeing profit taking as the market was rolling on the news that hedge funds were caught short and had to answer margin calls. This just added to the bullish fundamentals that are showing supplies could get scarce in these parts and overseas, especially Europe that was forced into the bad idea of having Russia supply their energy needs especially with winter. This could get ugly. In the overnight electronic session the November natural gas is currently trading at 5.931 which is 0.381 lower. The trading range has been 6.466 to 5.911.
Have A Great Trading Day!