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 Personal Income MoM, Personal Spending MoM, Core PCE Price Index MoM & YoY, Employment Cost Index QoQ, Employment Cost-Benefits QoQ, Employment Cost-Wages QoQ, and PCE Prices MoM & Yoy at 7:30 A.M., Michigan Consumer Sentiment Final, Michigan 5-Year Inflation Expectations Final, Michigan Consumer Expectations Final, Michigan Current Conditions Final, and Michigan Inflation Expectations Final at 9:00 A.M., Baker-Hughes Oil & Total Rig Count at 12:00 P.M.
On the Corn Front rains are falling across the Midwest Corn Belt and Great Lakes Region this early morning and into the late morning hours. We have a second round forecasted in the late afternoon hours into the wee hours of tomorrow morning. High winds, hail, heavy rains, severe thunderstorms and tornados are possible. Weather patterns in the Central US remains mixed, a cooler and wetter pattern is possible beyond August 4th, and as El Nino finally begins to impact the upper atmosphere. Widespread heat and dryness could blanket the U.S. Ag Belt in the meantime. Soil moisture in certain areas of the Corn Belt has improved , however, the areas are still at the critical stage. A wetter pattern shift is imperative to before mid-August. 59% of corn area and 53% of soybeans are experiencing drought conditions today. Negative soil moisture deficits worth 4 to 6 inches will exist in Eastern Kansas, Missouri, Western Illinois, Iowa. And Minnesota on August 3rd. Yields are at concerning worrisome stage as we move closer to the August 11th WASDE number and closer to harvest. Corn open interest grew 18,015 contracts but funds remain overall short. In the overnight electronic session the December corn is currently trading at 535 ¼ which is 7 cents higher. The trading range has been 542 ¼ to 533.
On the Ethanol Front this summer, The US Grains Council participated in the Pan American Conference on Biofuels held in Buenos Aires, Argentina, with a special focus on the opportunities for expansion of consumption and production of liquid biofuels in the region. Juan Sebastian Diaz, USGC Latin America (LTA), regional ethanol consultant participated in the panel, “Experiences in the Development of Bioethanol for Fuel,” to discuss opportunities and challenges for adopting voluntary programs in the United States. Diaz stressed the importance developing voluntary programs that expand bioethanol consumption, enhance domestic capabilities and reduce prices at the pump while supporting federal government initiatives to reduce their air contamination and greenhouse gas (GHG) emissions. During the panel, the council was able to demonstrated that ethanol has been able to find market niches inside the U.S., particularly in the adoption of E85 technologies, and its acceptance is getting stronger in those states setting ambitious decarbonization target. Diaz said. The rest of the story by Erin Boegele in Ethanol Producer Magazine. There were no trades or open interest in ethanol futures.
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