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 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., Fed Chair Powell Speech at 9:05 A.M., Baker Hughes Oil & Total Rig Count and Jackson Hole Symposium at 12:00 P.M.
On the Corn Front the US Drought Monitor featured expansion of abnormal dryness in Texas, Oklahoma, and New Mexico and a modest intensifying of drought in Iowa and Minnesota. While moisture across the Southern Plains must be monitored ahead of winter wheat seeding in early autumn. The PROFARMER TOUR wrapped up their journey yesterday and the final tallies will be in today. Although the results will have an increase of speculator participation, which will add volume and not necessarily open interest, we will be most definitely be watching Monday’s Crop Progress and the September 12th Crop Production, USDA Supply/Demand and WASDE data. With the changing winds of the weather it may all boil down to the combine where weight and size of kernels and volume of seed will be the ultimate gamechanger. Exports were encouraging yesterday with China’s concentration to continue to import Brazilian corn. However, They did have participation in the US market with other countries participating filling the void of the agriculture agreement 2 or 3 years ago. I expect China will come to the table as their hunger for feed and food while other countries are importing US agriculture and we still are wondering about yields that the US will harvest. Getting back to the PROFARMER TOUR they estimated yesterday that Iowa and Minnesota corn yields were pegged below in recent years. And the PROFARMER TOUR did nor survey Missouri, which was one of the corn states hardest hit by heat and dryness this growing season. In the overnight electronic session the December corn is currently trading at 487 which is 1 ¼ of a cent lower. The trading range has been 490 to 485 ¾.
On the Ethanol Front the Renewable Fuels Association (RFA) welcomed news from popular fuel retailer Sheetz that is slashing prices on lower carbon E15 fuel blend through the end of August. This more provides cost savings for drivers facing high pump prices and helps educate consumers about the many benefits of these lower carbon fuel blends. Sheetz is offering E15 at $2.99 at all their retail stations across multiple states. The national average price for regular gasoline today is $3.84 per gallon, according to AAA. “Summer may be ending, but American families are still on the road, and we thank Sheetz for this innovative effort to promote ethanol’s cost-savings benefits, said RFA President and CEO Geoff Cooper. “Ethanol has been selling for about a dollar per gallon less than gasoline this summer, at wholesale terminals where fuel is blended. We applaud Sheetz for passing along the benefits of E15’s lower cost to consumers—and thereby supporting renewable fuels and the rural economy.” There were no trades or open interest in ethanol futures.
Have An Excellent Trading Day!