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 Building Permits Prel, Building Permits MoM Prel, Housing Starts, and Housing Starts MoM at 7:30 A.M., Fed Barr Speech and Fed Collis Speech at 7:45 A.M., Fed Goolsbee Speech at 8:45 A.M., Fed Daly Speech at 9:00 A.M., Fed Collins Speech at 9:15 A.M., Baker Hughes Oil & Total Rig Count at 12:00 P.M., and Cattle on Feed at 2:00 P.M.
On the Corn Front were still playing hurry up and wait on any consistent rally that may be at a theatre by you soon. The drought that is impacting most of Northern and Central Brazil as indicated by several drought monitors as it is starting raise traders eyebrows as it is getting late in the game. There have been forecasts of showers, and or any moisture, which might be too little too late. One forecast has showers starting Sunday night and continuing into Thursday. Unfortunately, the updated 30-day EU rainfall map reflects more soaking rain for S Brazil and dryness across N Brazil. The pattern is stuck and shows little sign of change into December 16.Remember the funds are massively long soybeans, and heavy short corn and wheat, long soybean meal and maybe short to neutral on soybean oil. This could be the makings for Long soybeans short corn spread that funds could be riding. And traders are anticipating a change and we may see fund short-covering and as the corn and soybeans could lead the rally. We also have the December Crop Production USDA Supply/Demand and WASDE data on December 8th. The numbers may be overlooked on this report. As cycles and historical changes in crop production between November and January reports. Traders can taste a bottom however, we are still in a waiting game before the real fireworks, Starting the running of the bulls. In the overnight electronic session the December corn is currently trading at 472 which is 2 ¾ cents lower. The trading range has been 475 to 471 ¾ .
On the Ethanol Front , this week Emily Skor CEO Growth Energy, highlighted the biofuel industry’s perspective on the future of sustainable and clean energy during two high-profile forums in Washington D.C. On November 14, Skor joined lawmakers and industry leaders, including Argonne National Laboratory Director Paul Kearns, at Tech for Climate Action’s US Clean Energy Transition Conference, where she discussed the role biofuels play in our nation’s climate strategy, particularly when it comes to Sustainable Aviation Fuel (SAF). Skor was quoted, “We’re working very hard to make sure that biofuels play the important role that they should play in our national quest to get a net-zero economy in 2050.” Skor continued, “Last year, the US produced 16 million gallons of SAF. Many of you are hopefully familiar – the Biden administration has the SAF Grand Challenge, which commits the US to go from 16 million to three billion gallons in seven short years, so that of course requires some pretty exponential growth. We’ll keep you posted on further details on the success of the meetings. There were no trades or open interest in ethanol futures.
Brazilian Weather Heighten Traders Fears. The Corn & Ethanol Report 11/17/2023
Have A Great Trading Day!
Thanks,
Questions? Ask Dan Flynn today at 312-264-4374Daniel Flynn