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 kickoff the day with Redbook at 7:55 A.M., S&P Global Composite PMI Flash (Aug), S&P Global Manufacturing PMI Flash (Aug), and S&P Global Services PMI Flash (Aug) at 8:45 A.M., New Home Sales (Jul), New Home Sales MoM (Jul), Richmond Fed Manufacturing Index (Aug), Richmond Fed Manufacturing Shipments Index (Aug), and Richmond Fed Services Index (Aug) at 9:00 A.M., 2-Year Note Auction at 12:00 P.M., API Energy Stocks at 3:30 P.M., and Fed Kashkari Speech at 6:00 P.M.
On the Corn Front we have the Pro Farmer Tour beginning Wednesday, as we question crop conditions. Yesterday’s Crop Progress reported by the USDA that said corn was 55% good-to-excellent down 2% from last week. On the Export Inspection like the weather we had a mixed bag of tricks. While we were up from a week ago there is still a lot of debate and floor shuffling about this crop, especially with global trade has the market hanging in the balance. The 2021/22 marketing year started September 1st for corn, sorghum and soybeans. The next supply/demand estimates are scheduled for September 12th. With drought sacking corn in South Dakota the Ohio crop, which has plenty of moisture does not look great either. In the overnight electronic session the December corn is currently trading at 645 ¾ which is 16 ¾ cents higher. The trading range has been 647 ½ to 631 ¼.
On the Ethanol Front the USDA is scheduled to open a new $100 million, 90-day application window for the Higher Blends Infrastructure Incentive Program (HBIIP) today. The HBIIB is a competitive grant program that aims to significantly increase the sale and use of higher blends of ethanol and biodiesel by expanding the infrastructure for renewable fuels derived from US agricultural products. The market continues to show an active cash market with the futures remaining dormant.
On the Crude Oil Front traders are looking ahead to higher prices, as we edge and move closer to the Labor Day Weekend and the official end of the summertime driving season, we are going to see higher prices for gas and groceries. This will galvanize people who do not care what your ideology is but rather not be burdened with day-to-day living expenses, and deal in facts. What has been done to the energy industry under this current administration, it has been one wrong move after another. Ideology will not stop pain at the pump and pain at the grocery store. This ideology must be met with fact. What makes electricity? External combustion with crude oil and natural gas. The enemy is not the cleanest fuel in the world and solar and wind power will not supply the power grid with the needed energy to meet are day-to-day living and get through the winter months without a blackout or brownout. In the overnight electronic session the October crude oil is currently trading at 9170 which is 134 points higher. The trading range has been 9219 to 9042.
On the Natural Gas Front turmoil on the overall market spells trouble ahead. With a deepening crisis in Europe and at home, this self-inflicted ideology does not seem to have an upside or reality. We also have the world’s largest LNG exporter, and they are having pipeline problems. It is amazing how ideology and reality can not meet. Environmental groups have repeatedly stopped or slow down pipeline projects and limited the Appalachian Basin, which is the country’s largest gas-producing region. All in the name of ideology. In the overnight electronic session the September natural gas is currently trading at 9.703 which is 0.023 higher. The trading range has been 10.010 to 9.626.
Have A Great Trading Day!
Dan FlynnQuestions? Ask Dan Flynn today at 312-264-4374