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 All Saints Day and month of November with MBA 30-Year Mortgage Rate, MBA Mortgage Applications, MBA Mortgage Market Index, MBA Mortgage Refinance Index, and MBA Purchase Index at 6:00 A.M., ADP Employment Change at 7:15 A.M., S&P Global Manufacturing PMI Final at 8:45 A.M., ISM Manufacturing PMI, JOLT’s Job Openings, ISM Manufacturing Employment, Construction Spending MoM, ISM Manufacturing New Orders, ISM Manufacturing Prices, and JOLT’s Job Quits at 9:00 A.M., EIA Energy Stocks and 17-Week Bill Auction at 9:30 A.M., Fed Rate Decision at 1:00 A.M., Fed Press conference and Treasury Refunding Announcement at 1:30 P.M., Cotton System, Dairy Products Sales, Fats & Oils, and Grain Crushings at 2:00 P.M.
On the Corn Front we start off November with traders debating, Brazilian weather, US Weather, economy, and Fed moves and consumer spending participation in the market. Ag Resources reports no direction and not many contracts changing hands. The choppiness of recent weeks continues with neither the bears nor the bulls able to sustain a trend in their favor. The remaining US corn and soybean harvest will quickly advance in the next 10 days on warming and dry weather, but Brazilian weather is getting a closer watch with no change in the overall pattern. Too little rain will fall across Mato Grosso, Goais, Mato Grosso du Sol while another round of flooding rain drops across RGDS/Santa Caterina and Parana. Although its early in the Brazilian crop cycle, the pattern needs to change by mid-November or Brazilian corn and soybean crop production estimates will begin to decline. ARC reminds us traders, the bears made a case with Brazil producing a second record large harvest that would further hurt US export demand. The market is pricing in the future and trading risk demand off the table, for the moment… In the overnight electronic session the December corn is currently trading at 479 ½ which is ¾ of a cent higher. The trading range has been 480 to 478.
On the Ethanol Front the EIA reports US biofuels operable production capacity was up slightly, with a small gain for ethanol. Feedstock consumption was down slightly. Ethanol capacity reached 17.719 billion gallons up 10 MMgy on the month and up 2,017 billion gallons from last year. There were no trades or open interest in ethanol futures.
Have A Great Trading Day!