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 Export Inspections at 10:00 A.M., 3-Month & 6-Month Bill Auction at 10:30 A.M., Milk Production at 2:00 P.M., and Crop Progress at 3:00 P.M.
On the Corn Front we are coming into the session higher with heat impacting the market this week. The PRO FARMER CROP TOUR kicks off today with eastern and western legs starting to gather yield information. The Tour ends Thursday with PRO FARMER to estimate yields on Friday. Already questions are being asked about soybean and corn seed size based on the coming extreme heat and the impact of low soil moisture. The extreme Midwest heat will have a more acute impact on soy due to this crop being involved in its pod filling stage. Expect PROFARMER tweets from the field to have an impact short-term CBOT price direction and add to intraday market volatility. The December corn is currently trading at 495 ¼ which is 2 ¼ cents higher. The trading range has been 506 ¼ to 493 ¾.
On the Ethanol Front Vantage Market Research predicts the final market size and shares of fuel based ethanol will surpass $120.1 billion by 2030. The market has been steadily growing over the years due to increased demand for alternative energy, government initiatives to promote the use of renewable fuels, and rising concerns about environmental pollution caused by fossil fuels. I would not completely throw the baby out with the bathwater as the current war on internal combustion engines, Crude oil, natural gas etc. I do not believe wind and solar energy could stack up during an Act of God or other extreme demand surge on the power grid. There were no trades or open interest in ethanol futures.
Have An Excellent Trading Day!