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 YoY at 7:55 A.M., S&P Global Manufacturing PMI Final at 8:45 A.M., JOLT’s Job Openings, ISM Manufacturing PMI, ISM Manufacturing Employment, ISM Manufacturing New Orders, ISM Manufacturing Prices, JOLT’s Job Quits, and Construction Spending MoM at 9:00 A.M., Dallas Fed Services Index and Dallas Fed Revenues Index at 9:30 A.M., API Energy Stocks and LMI Logistics Managers Index Current at 3:30 P.M.
On the Corn Front prices were lower to the tune 16 to 18 cents. Weekend rains were better than expected and more normal temperatures and rainfall are forecasted across the Midwest. The December corn fell below the 2-day moving average, which sparked long liquidation. With extreme heat is not expected in in the Midwest in August and the bulls will be keeping their cards close to the vest. The US corn crop was rated 55% good to excellent vs. 57% last week, and 61% a year ago. For the remainder of summer expect more volatility and whipsawing of prices. With prices below 520, this is not a good place to add short positions. Record yields and normal Ukraine exports does not appear to be in the cards. China remains an active buyer and shipper in the Brazilian corn market. Brazil is expected to export a record 8 million metric tons plus in August. China is also shopping US sorghum offers as their growing need to boost feed grain imports in early 2024. In the overnight electronic session the December corn is currently trading at 511 which is 2 cents lower. The trading range has been 517 ¼ to 509 ¼.
On the Ethanol Front Amy Klobuchar D-Minn>, and Pete Rickets, R-Neb., on July 27th introduced the Flex Fuel Fairness Act, a bill that aims to provide meaningful incentives for automakers to manufacture flex fuel vehicles (FFV’s) in addition to battery electric vehicles. “The Biden EPA has made a mistake and ignored the proven benefits of flex fuel vehicles that can run on higher ethanol blends,” Rickets said. “Our bill levels the playing field for a proven Nebraska alternative to expensive and burdensome electric vehicles. Nebraskans know biofuels like ethanol are a proven solution that lowers prices for consumers at the pump, is great for farmers and ranchers, and reduces our dependence on foreign oil.” The EPA recently released proposed tailpipe greenhouse gas (GHG) emission standards for model year 2027-2032 light duty vehicles. Once finalized, the proposed standards will require automakers to meet certain tailpipe carbon dioxide emission values, on average, across their fleet of new vehicles. The complete story is in Ethanol Producer Magazine by Erin Voegele. There were no trades or open interest in ethanol futures.
Have An Excellent Trading Day!