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 Export Sales, Initial Jobless Claims (16/Jul), Philadelphia Manufacturing Index (Jul), Philly Fed Business Conditions (Jul) Philly Fed CAPEX Index (Jul), Philly Fed Employment (Jul), Philly Fed New Orders (Jul), Philly Fed Prices Paid (Jul< Continuing Jobless Claims (09/Jul) and Jobless Claims 4-Week Average (16/Jul) at 7:30 A.M., CB Leading Index MoM (Jun) at 9:00 A.M. EIA Natural Gas Stocks at 9:30A.M., 4-Week & 8-Week Bill Auction at 10:30 A.M.,10-Year TIPS Auction at 12:00 P.m., and Milk Production at 2:00 P.M.
On the Corn Front we have Export Sales and as we are head into pollination this is a crucial time for yields. Rains and hot weather were keys to the selloff as well as recession fears. As we are undergoing pollination across the Midwest this week and next week Ken Ferrie, Farm Journal Field Agronomist, offers recommendations and reminders for consideration: Corn needs ½” of silk to pollinate and if you are seeing heavy Japanese beetle and/or corn rootworm (CRW) clipping, you may need to invest in control measures if you haven’t already. Some of the fields Ferrie is most concerned about are planted to fully traited hybrids, which should able to control better with CRW pressure but in many cases aren’t, at least in central Illinois. “If you have corn rootworm beetles thick enough to cause clipping issues to traited corn you have full blown resistance out there,” “ he says. “The home grown beetles in your field; they didn’t move from a neighboring field. “Rootworms don’t move much in luscious green corn,” Ferrie adds. “Rather, they move when a field is falling apart, and then they migrate to a neighboring field that poses a better place for laying their eggs.” In the overnight electronic session the September corn is currently trading at 578 which is 14 ¼ cents lower. The trading range has been 593 ½ to 575 ¼.
On the Ethanol Front production bounces back and stocks tighten. The EIA said production averaged 1.034 barrels a day, the first week-to-week increase since mid-June, and up 29,000 on the week 6,000 on the year. The Renewable Fuels Association says net inputs by ethanol refiners and blenders were steady and volume of gasoline supplied to the market was up sharply but both below year ago levels. The domestic ethanol supply of 23.553 million barrels were 53,000 less than the previous week, but 1.035 million more than last year at this time. The USDA’s next corn for ethanol use estimate is August 12th
There were no trades or open interest in ethanol futures.
On the Natural Gas Front the EIA Gas Storage will be released this morning with analysts expecting a 48bcf rise in gas inventories. 12 analysts polled estimate injections ranging from 39bcf to 59bcf. This compares to the one-year increase of 50bcf and the five-year average of 41bcf.
Have A Great Trading Day!
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