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 (08/Oct) and MBA 30-Yeqr Mortgage Rate (08/Oct) at 6:00 A.M., CPI and Real Earnings at 7:30 A.M., NY Fed Treasury Purchases 4.5 to 7 yrs. at 9:30 A.M., 119-Day Bill Auction at 10:30 A.M., 30-year Bond Auction at 12:00 P.M., FOMC Minutes at 1:00 P.M., Dairy Product Sales at 2:00 P.M., API Energy Stocks and Fed Brainard Speech at 3:30 P.M., Fed Bowman Speech at 7:00 P.M., and World Bank/IMF Annual meeting.
On the Corn Front yesterday’s report kind of put a damper on the bulls spirits for now. Even when or not exports rise we have a huge logistics problem that was man-made by mandates bad government management and spending. If you look at all the ships waiting to load in Los Angeles it looks like the Armada formed for the Normandy invasion. Throw in a high U.S. dollar and high taxes the small middle-class gets stuck again. We will be the only game in town if big government will the private sector do what it does best. Hopefully, we will gain some ground by Friday’s Export Sales. In the overnight electronic session the December corn is currently trading at 519 ¾. The trading range has been 525 ¼ to 519.
On the Ethanol Front the industry keeps jockeying for position to be a profit and revenue industry which the product can be used in so many other ways to normal everyday life other than motor fuel. The market domestically and abroad could ignite a export surge. To bad this administration fails to see the many benefits the U.S. market can accomplish. Once again we had no real activity in the ethanol futures markets.
Have A Great Trading Day!