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 spook festival with Employment Cost-Benefits QoQ, Employment Cost-Wages QoQ, and Employment Cost Index QoQ at 7:30 A.M., Redbook YoY at 7:55 A.M., S&P/Case-Shiller Home Price Index MoM & YoY, House Price Index, and House Price Index MoM & YoY at 8:00 A.M., Chicago PMI at 8:45 A.M., CB Consumer Confidence at 9:00 A.M., Dallas Fed Services Index and Dallas Fed Services Revenues Index at 9:30 A.M., 52-Week Bill Auction at 10:30 A.M., API Energy Stocks at 3:30 P.M., and FOMC Meeting.
On the Corn Front AG Resources points out, a rare pattern set up for Southern Hemisphere weather in the coming months. EL NINO Climate is charging ahead while word ocean temperatures are record warm. Marine heat blobs are noted in the Pacific, Atlantic, Mediterranean, and Indian oceans. The warm ocean pools direct the jet stream and itemize where long waves will set up. Currently, the South America weather pattern is stuck and shows little sign of change as spring passes to summer. And Australia looks to enter a worsening drought amid the pure lack of rain away from the coast. Neither are favorable. However, attention should be focused on Brazil due to its growing importance in the world oilseed/grain production. US Crop Progress reported that 85% of the 2023 US soybean harvest is complete and 71% of the corn has been harvested. Were starting off in thin volume as soybeans pressured the market delivering 438 contracts of soybean receipts against the November futures which started the slide, the market is trying to mount a comeback. North Dakota is 57% harvested in corn which is 14% below the national average. Snow fell across the state over the weekend and the remaining corn harvest will be slowed by corn standing in snow. Global challenges include, global supply/demand, weather, and trade winds with the two wars that has the globe’s attention. The next Crop Production USDA Supply/Demand and WASDE data will be released on Thursday November 9th. In the overnight electronic session the December corn is currently trading at 478 which is a ¼ of a cent lower. The trading range has been 479 to 477 ½.
On the Ethanol Front Erin Voegele with Ethanol Producer Magazine reports US Senators led by Jeff Merkley, (D-Or), is leading the charge urging the IRS to ensure that duels made from petroleum products, specifically plastic feedstocks, are unable to qualify for the inflation Reduction Act’s sustainable aviation fuel (SAF) and clean fuels production tax credits. Merkley and Sens. Edward Markey, (D-Ma), Elizabeth Warren, (D-Ma), Cory Booker, (D-NJ), and Sheldon Whitehouse, (D-RI), sent a letter to IRS Commissioner Danny Werfel explaining why the agency should ensure fuels made from plastic-based feedstocks will not qualify for the tax credits. Within the letter, the senators describe the many emission and human health related impacts of plastic industry, including facilities that take part in plastic-based waste and refine it into chemicals used to make fuel, such as SAF. The plain language of the IRA is clear that petroleum products do not qualify for the SAF tax incentives, and should disqualify plastic-based fuels,” the senators wrote. “Both section 40B and section 45Z credits include restrictions on the type of aviation fuel that is eligible to qualify for the tax incentives , and state that the fuel must be derived from … petroleum, because plastic is a petroleum product. Raw feedstocks most commonly derived from fossil fuels are a basic building block in the plastics manufacturing process. If plastic-derived waste is processed to create aviation fuel, it is still a petroleum-based product being used to create the fuel. Just because the petroleum has gone through additional layers of processing does not change the reality that the end product is a petroleum-derived product.” A full copy of the letter can be found on Merkley’s website. The war on energy and manufacturing continues. There were no trades or open interest in ethanol futures.
Happy Halloween. The Corn & Ethanol Report 10/31/2023
We kickoff the spook festival with Employment Cost-Benefits QoQ, Employment Cost-Wages QoQ, and Employment Cost Index QoQ at 7:30 A.M., Redbook YoY at 7:55 A.M., S&P/Case-Shiller Home Price Index MoM & YoY, House Price Index, and House Price Index MoM & YoY at 8:00 A.M., Chicago PMI at 8:45 A.M., CB Consumer Confidence at 9:00 A.M., Dallas Fed Services Index and Dallas Fed Services Revenues Index at 9:30 A.M., 52-Week Bill Auction at 10:30 A.M., API Energy Stocks at 3:30 P.M., and FOMC Meeting.
On the Corn Front AG Resources points out, a rare pattern set up for Southern Hemisphere weather in the coming months. EL NINO Climate is charging ahead while word ocean temperatures are record warm. Marine heat blobs are noted in the Pacific, Atlantic, Mediterranean, and Indian oceans. The warm ocean pools direct the jet stream and itemize where long waves will set up. Currently, the South America weather pattern is stuck and shows little sign of change as spring passes to summer. And Australia looks to enter a worsening drought amid the pure lack of rain away from the coast. Neither are favorable. However, attention should be focused on Brazil due to its growing importance in the world oilseed/grain production. US Crop Progress reported that 85% of the 2023 US soybean harvest is complete and 71% of the corn has been harvested. Were starting off in thin volume as soybeans pressured the market delivering 438 contracts of soybean receipts against the November futures which started the slide, the market is trying to mount a comeback. North Dakota is 57% harvested in corn which is 14% below the national average. Snow fell across the state over the weekend and the remaining corn harvest will be slowed by corn standing in snow. Global challenges include, global supply/demand, weather, and trade winds with the two wars that has the globe’s attention. The next Crop Production USDA Supply/Demand and WASDE data will be released on Thursday November 9th. In the overnight electronic session the December corn is currently trading at 478 which is a ¼ of a cent lower. The trading range has been 479 to 477 ½.
On the Ethanol Front Erin Voegele with Ethanol Producer Magazine reports US Senators led by Jeff Merkley, (D-Or), is leading the charge urging the IRS to ensure that duels made from petroleum products, specifically plastic feedstocks, are unable to qualify for the inflation Reduction Act’s sustainable aviation fuel (SAF) and clean fuels production tax credits. Merkley and Sens. Edward Markey, (D-Ma), Elizabeth Warren, (D-Ma), Cory Booker, (D-NJ), and Sheldon Whitehouse, (D-RI), sent a letter to IRS Commissioner Danny Werfel explaining why the agency should ensure fuels made from plastic-based feedstocks will not qualify for the tax credits. Within the letter, the senators describe the many emission and human health related impacts of plastic industry, including facilities that take part in plastic-based waste and refine it into chemicals used to make fuel, such as SAF. The plain language of the IRA is clear that petroleum products do not qualify for the SAF tax incentives, and should disqualify plastic-based fuels,” the senators wrote. “Both section 40B and section 45Z credits include restrictions on the type of aviation fuel that is eligible to qualify for the tax incentives , and state that the fuel must be derived from … petroleum, because plastic is a petroleum product. Raw feedstocks most commonly derived from fossil fuels are a basic building block in the plastics manufacturing process. If plastic-derived waste is processed to create aviation fuel, it is still a petroleum-based product being used to create the fuel. Just because the petroleum has gone through additional layers of processing does not change the reality that the end product is a petroleum-derived product.” A full copy of the letter can be found on Merkley’s website. The war on energy and manufacturing continues. There were no trades or open interest in ethanol futures.
Have A Safe & Wonderful Halloween!
Thanks,
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