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 Advanced Durable Goods Orders MoM, Export Sales, Durable Goods Orders Ex Transportation MoM, GDP Price Index QoQ Adv., Retail Inventories Ex Autos MoM Adv, Wholesale Inventories MoM Adv., Goods Trade Balance Adv., Initial Jobless Claims, Jobless Claims 4-Week Average, Non-Defense Goods Orders Ex Air, PCE Prices Adv., Real Consumer Spending QoQ Adv., GDP Sales QoQ Adv., Durable Goods Orders ex Defense MoM, Continuing Jobless Claims, and Core PCE Prices QoQ Adv. At 7:30 A.M., Pending Home Sales MoM & YoY at 9:00 A.M., EIA Natural Gas Storage at 9:30 A.M., Kansas Fed Composite Index and Kansas Fed Manufacturing Index at 10:00 A.M., 4-Week & 8-Week Bill Auction at 10:30 A.M., 15-Year & 30-Year Mortgage Rate at 11;00 A.M., and 7- Year Note Auction at 12;00 P.M.
On the Corn Front open interest rose 2,330 contracts in yesterday’s action. Soybeans rose 9,274 contracts while wheat open interest declined 548 contracts, while wheat options grew 9,417 contracts following corn’s lead as options on corn rose another 2,074 contracts. This is a tell-tale sign traders are expecting a move to the upside, but futures volatility has traders believe to maximize profits on the move and are hesitant to buying outright futures. Weather, volatility, and prospective yields dominate the marketplace. In the overnight electronic session the December corn is currently trading at 548 ½ which is a ¼ of a cent higher. The trading range has been 555 to 544 ¼.
On the Ethanol Front the EIA reported that ethanol production was up 2%, while stocks were slightly higher and exports were unchanged. Production averaged 1.094 barrels per day (bpd) 24,000 barrels from a week ago, and up 73,000 (bpd) from a year ago. Weekly ending stocks reached 23.238 million barrels from a week ago up 62,000 barrels from a year ago, but down 100,000 barrels compared to a year ago. Exports were 86,000 (bpd), unchanged from last week. Last year the EIA did not report exports last year, and there were no reports on ethanol imports. There were no trades or open interest in ethanol futures.
Have An Excellent Trading Day!