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 Initial Jobless Claims (09 OCT), Jobless Claims (09/OCT), PPI MoM and YOY (SEP), Continuing Jobless Claims (02/OCT) and Core PPI YoY & MoM (SEP) at 7:30 A.M., Fed Bostic Speech and EIA Natural Gas Storage and NY Fed Treasury Purchases 22.5 to 3o yrs. at 9:30 A.M., EIA energy Stocks at 10:00 A.M., 4-Week & 8-Week Bill Auction at 10:30 A.M., Fed Barkin Speech and Fed Williams Speech at 12:00 P.M., Monthly Budget Statement (SEP) 1:00 P.M. and World Bank/IMF Annual Meeting.
On the Corn Front funds began selling below the 200 day moving average while Open Interest is down 500 thousand contracts from February 2021. Imports and exports are slowed due to logistics. Throw in a government that keeps writing checks it cannot cash. And in the meantime can’t keep the lights on let alone keeping communications open. So with food and energy costs rising and less disposable income to the middle-class we will now bet on a slowdown in meat demand. In the overnight electronic session the December corn is currently trading at 516 which is 3 ¾ cents higher. The trading range has been 516 ½ to 511.
On the Ethanol Front demand is near or at 5.200 vs. 5.032 last year. The industry has taken a back seat as big government is causing and trying to sort out wounds that have been self-inflicted. There was no Open Interest in the ethanol futures.
Last night’s API showed huge builds in crude oil of +5.213M, Cushing down -2.275M, gasoline – 4.575M and distillates -2.707M. On the ethanol numbers the Thomson Reuters poll with 16 analysts participating expect builds of 85bcf to 112bcf with the median 94bcf. Tis compares to the 11 year injection of 49bcf and the five-year average of 69bcf.
Have A Great Trading Day!