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 last day of August with Challenger Job Cuts at 6:30 A.M., Export Sales, Personal Income MoM, Personal Spending MoM, Core PCE Price Index MoM & YoY, Initial Jobless Claims, PCE Price Index MoM & YoY, Jobless Claims 4-Week Average, and Continuing Jobless Claims at 7:30 A.M., Fed Collins Speech at 8:00 A.M., Chicago PMI at 8:45 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.
Our Heats and Prayers go out to our friends in Florida, Georgia and the Carolina’s and all those in the path of Idalia. Yesterday’s ADP Employment Change is not painting a pretty picture for tomorrows Unemployment data. China’s manufacturing index-PMI gained slightly to 49.7 versus 49.3, but the index still held below $50 rate suggesting modest contraction in China’s manufacturing sector. It used to be if the US sneezed the rest of the world would catch aa cold. Times are a changin. US exports to China are hinting that China’s economy is slowly starting to emerge from its morass post COVID restart of February. Meanwhile, the Grain Corridor Pact between Russia and the Ukraine for Russia to move discounted wheat to Turkey as countries across the globe are expecting shortages. While Russia has offered FOB wheat at $270MT, which offers export opportunities for the EU and Eastern Europe. Putin and Erdogan are expected to discuss the grain options. I expect no deal for the Ukraine to ship maritime in the Black Sea. The US market remains concerned about weather and yields as we move closer to harvest. In the overnight electronic session the December corn is currently trading at 483 which is 2 ¼ cents higher. The trading range has been 484 to 479 ¼.
On the Ethanol Front Kirk Maltais with Dow Jones News Wires reports ethanol inventories have fallen to their lowest point since last November, according to government data. The EIA said inventories totaled 21.61 for the week ended August 25th, which is down over 1 million barrels from last week. The pullback was larger than the street of forecast by analysts surveyed by Dow Jones, which predicted that they would be anywhere from 22.35 to 23 million barrels. There were no trades or open interest in ethanol futures.
Have An Excellent Trading Day!