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 Challenger Job Cuts (Sep) at 6:30 A.M., Export Sales, Initial Jobless Claims (01/Oct), Jobless Claims 4-Week Average (01/Oct), and Continuing Jobless Claims (24/Sep) at 7:30 A.M., EIA Natural Gas Stocks at 9:30 A.M., 4-Week & 8-Week Bill Auction at 10:30 A.M., Fed Evans Speech and Fed D. Cook Speech at 12:00 P.M. and Fed Waller Speech at 4:00 P.M.
On the Corn Front we closed at tad higher. Ow demand for US exports due to a higher US dollar. There is more speculation that Russia will not extend to the Ukraine export corridor. Argentina’s weather remains dry while South Brazil is wet and North Brazil is dry. These factors should make next Wednesday’s Crop Production USDA Supply/Demand and WASDE data more significant. In the overnight electronic session the December corn is currently trading at 679 ¼ which is 4 ¾ cents lower. The trading range has been 685 ¾ to 686 ¼.
On the Ethanol Front production was up 4% from last week but down 9% on the year. While Stocks were in reverse with we were down 4% from last week and 9% higher on the year. The ethanol futures remain in drydock.
On the Crude Oil Front we are in need to replenish the Strategic Petroleum Reserves (SPR’s) and it looks like the Biden administration trapped themselves in buying high and selling low. Not sound economics and take a wild guess who gets footed with the bill. Another thing about politics in the Middle East is doing business or cutting deals with Iran will draw a not so subtle response from Saudi Arabia and their allies and could endanger the Abraham Accord. With OPEC cutting production 2 million barrels a day and we are forced to buy dirty fuel from our enemies. There is nothing good that will come of this and I know I sound redundant but reinvesting in US Oil our problems will be solved and bolster an already fragile economy. In the overnight electronic session the November crude oil is currently trading at 8756 which is 20 points lower. The trading range has been 8866 to 8704.
On the Natural Gas Front we have the EIA Gas Storage and the wsj.com surveyed 14 analyst that their estimates range with injections of 95 bcf to 131 bcf with the target 114 bcf. This compares to the one-year injection of 114 bcf and the five-year average of 87 bcf. In the overnight electronic session the November natural gas is currently trading at 7.020 which is 0.090 higher. The trading range has been 7188 to 6.921.
Have A Great Trading Day!
Dan FlynnQuestions? Ask Dan Flynn today at 312-264-4374