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 at 6:30 A.M., Export Sales, Initial Jobless Claims, Unit Labor Costa QoQ Prel, Nonfarm Productivity QoQ Prel, Jobless Claims 4-Week Average, and Continuing Jobless Claims at 7:30 A.M., S&P Global Composite PMI Final and S&P Global Services PMI Final at 8:45 A.M., ISM Services PMI, Factory Orders MoM, ISM Services Employment, ISM Services New Orders, ISM Services Prices, Factory Orders ex Transportation, and ISM Business Activity at 9:00 A.M., EIA Natural Gas Storage at 9:30 A.M., 4-Week & 8-Week Bill Auction at 10:30 A.M., 15-Year & 30-Year Mortgage Rate at 11:00 A.M.
On the Corn Front the market continues to absorb changing weather and the modules suggest there is more to come. With the reality of crazy weather the lower 48 has realized with certain areas welcoming rain have been dry and fears of flooding can be the next reality to this crop. We are at a point where concerns are mounting about yields with a wee export market, corn for ethanol use, and little carryover. The markets are also concerned about the dreaded recession word and how the global economies will respond. The US is not in the best shape than other countries participating, especially with credit rating falling from AAA status in only the second time in history. The first time was 2011 and who was at the helm back then? We will continue to follow weather and ponder what the good-to-excellent yields will produce with volatility and whipsaws on the horizon with a weak economy. Remember in a weather market, it is not what you plant but what you grow. In the overnight electronic session the December corn is currently trading at 498 ½ which is 2 cents lower. The trading range has been 502 ¾ to 496 ½.
On the Ethanol Front the EIA reported fuel to ethanol production fell 3%, Stocks down 2%, but exports were up 64%. Production averaged 1.067 million barrels per day vs. 1.094 a week ago, but was up 24,000
(bpd) a year ago. Stocks fell 22.86 million barrels and down 534,000 barrels from a year ago. US ethanol exports averaged 141,000 (bpd) up 55,000 (bpd) from last week, there was no available data on last year. There were no trades or open interest in ethanol futures.
Have An Excellent Trading Day!