End of Month Liquidation. The Corn & Ethanol Report 08/30/2022

We kickoff the day with Fed Barkin Speech at 7:00 A.M., Redbook YoY (27/Aug) at 7:55 A.M., S&P-Case-Schiller Home Price MoM & YoY (Jun)and House Price Index MoM & YoY (Jun) at 800 A.M., JOLTS Job Openings (Jul) CB Consumer Confidence  (Aug) and JOLTS Job Quits at 9:00 A.M., Dallas Fed Services Index (Aug) and Dallas Fed Services Revenues (Aug) at 9:30 A.M., Fed Williams Speech at 10:00 A.M., and API Energy Stocks at 3:30 P.M.

On the Corn Front we are hearing the crop is short on height but long on yield. Heavy storms with high winds blew through the Plains and Midwest yesterday covering the Corn Belt and damage assessments should be out today. Yesterday’s Crop Production show average corn yield is forecasted at 175.4 bushels per acre down 1.6 bushels from last year. NASS forecast record-high yields in California, Iowa, Washington and Wisconsin. Acres planted to corn at 89.8 million down 4% from 2021. Some still feel weather in the planting and early growing in some states could affect corn yields negatively. Ukraine export corridors in October end in October & Russia will may not extend the humanitarian and there are whispers that the Ukraine may not be able to refill port elevators due to logistics for future vessel loadings. In the overnight electronic session the December corn is currently trading at 672 which is 11 cents lower. The trading range has been 682 ¾ to 671 ¼.

On the Ethanol Front Canada to import record volume of US ethanol in 2022. Fuel ethanol consumption in Canada is expected to grow by approximately 8.6% this year, according to a report filed with the USDA Foreign Agricultural Services Global Agricultural Services Global Agricultural Network. Imports of US fuel ethanol is expected to reach a record 1.5 billion liters (396.26 million gallons). Still no trade or open interest in ethanol futures.

On the Crude Oil Front we have API today and it seems like a correction across the board is happening today. There is still bullish news as talk that OPEC+ production cuts are on the way. Also we will be watching two Disturbances in the Atlantic that at the moment show a low percentage of forming into a Tropical Storm in this so far light hurricane season with ocean temperatures lower than earlier forecasted. In the overnight electronic session the October crude oil is currently trading at 9397 which is 304 points lower. The trading range has been 9766 to 9372.

On the Natural gas Front the EU faces a rough winter while Germany now seems upbeat on energy security. Russia has cut off France and reduced Natural gas to a dozen EU countries. France like other European countries is trying to beef up its gas reserves for winter and fill up its storage by early autumn to avert an economic and political crisis. And the Texas Railroad Commission to set new weatherization rules and is getting blasted for it. In the overnight electronic session The October natural gas is currently trading at 9.011 which is 0.325 lower. The trading range has been 9.300 to 8.931.

Have A Great Trading Day!

Dan Flynn

Questions? Ask Dan Flynn today at 312-264-4374