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 Fed Barkin Speech at 6:30 A.M., Redbook YoY at 7:55 A.M., Existing Home Sales, Existing Home Sales MoM, Richmond Fed Manufacturing Index, Richmond Fed Manufacturing Shipments, and Richmond Fed Services Index at 9:00 A.M., NT Fed Treasury Purchases 2.25 to 4.5 years at 9:30 A.M., Fed Bowman Speech and Fed Goolsbee Speech at 1:30 P.M., and API Energy Stocks at 3:30 P.M.
On the Corn Front the USDA’s update of Food Expenditures for the month of June showed that the total amount of dollars spent on food in June was down 1% from May but marked the 28th consecutive month of year-over-year increases. Total Dollars spent on food at home was down 2% from May and was 1% less than a year ago. Dollars spent on food away from home was down 2% from May but was 8% higher than a year ago. The data series does not offer any information with regard to the volume of food and only measures the total amount has accelerated in the post covid ere. The latest CPI Food Index reading showed that the food Purchasing Power of the US dollar remains in sharp retreat. Since January 2020, the food power of $1 has lost 19%. In other words, $1 in July had the same buying power of 81 cents in January 2020. Data supplied by AGRESOURCES. These inflation numbers that lurk in the shadows, and when the data suggests what’s working and what is totally not, historically not a great sign into an election cycle. We will be monitoring news and rewets from the PROFARMER CROP TOUR. In the overnight electronic session the December corn is currently trading at 482 ¾ which is a 1/4 of a cent higher. The trading range has been 485 ½ to 478 ¾. We are riding in to the undervalued zone again.
On the Ethanol Front really no breaking fresh news as the push is on to tout biofuels and ethanol. There was not to much to report without regurgitating old news. There were no trades or open interest in ethanol futures.
Have An Excellent Trading Day!