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 New Year with S&P Global Manufacturing PMI Final at 8:45 A.M., Construction Spending MoM, and ISM Manufacturing PMI at 9:00 A.M., Export Inspections at 10:00 A.M., 3-Month & 6-Month Bill Auction AT 10:30 a.m., Cotton System, Fats & Oils, and Grain Crushings at 2:00 P.M.
Grains are expected to open mixed with all bets that volume is expected to stay thin into late week. Soybeans are expected to shed moderate risk premium at this morning’s open as needed heavy rain starts to fall across northern Brazil and as a pattern of active showers in N. Brazil has been extended into Jan 15th Worst-case scenarios will ne avoided in Brazil if this pattern can be sustained into the early part of February. However, the debate over Brazil’s ultimate soy surplus is far from settled amid dire weather between Oct & Dec- Ag Resource also notes, private Brazilian soy crop estimates continue to erode and drift ever close to 150 MMT’s. Grain traders are also monitoring the renewed escalation in Black Sea tension and firm international markets. Russia on Friday launched a conflict-high number of rockets at Ukraine – some suspected to enter Polish air space and has been unrelenting in missile attacks on Russian naval assets early last week and a Ukrainian strike in the Russian city of Belgorod over the weekend. Physical grain shipments must be disrupted in the Black Sea before substantial premium is added, but there’s no doubt the war is expanding. Bitterly cold temps in Central Russia hinder interior logistics. Red Sea traffic uncertainty also remains as Iran sends it own war ship into the region. Additionally, national elections will spread across the globe in 2024, from the US and Mexico to India and Pakistan. Geopolitical issues and their impact on asset pricing are unlikely to ease this year.
Happy New Year! The Corn & Ethanol Report 01/02/2024
We kickoff the New Year with S&P Global Manufacturing PMI Final at 8:45 A.M., Construction Spending MoM, and ISM Manufacturing PMI at 9:00 A.M., Export Inspections at 10:00 A.M., 3-Month & 6-Month Bill Auction AT 10:30 a.m., Cotton System, Fats & Oils, and Grain Crushings at 2:00 P.M.
Grains are expected to open mixed with all bets that volume is expected to stay thin into late week. Soybeans are expected to shed moderate risk premium at this morning’s open as needed heavy rain starts to fall across northern Brazil and as a pattern of active showers in N. Brazil has been extended into Jan 15th Worst-case scenarios will ne avoided in Brazil if this pattern can be sustained into the early part of February. However, the debate over Brazil’s ultimate soy surplus is far from settled amid dire weather between Oct & Dec- Ag Resource also notes, private Brazilian soy crop estimates continue to erode and drift ever close to 150 MMT’s. Grain traders are also monitoring the renewed escalation in Black Sea tension and firm international markets. Russia on Friday launched a conflict-high number of rockets at Ukraine – some suspected to enter Polish air space and has been unrelenting in missile attacks on Russian naval assets early last week and a Ukrainian strike in the Russian city of Belgorod over the weekend. Physical grain shipments must be disrupted in the Black Sea before substantial premium is added, but there’s no doubt the war is expanding. Bitterly cold temps in Central Russia hinder interior logistics. Red Sea traffic uncertainty also remains as Iran sends it own war ship into the region. Additionally, national elections will spread across the globe in 2024, from the US and Mexico to India and Pakistan. Geopolitical issues and their impact on asset pricing are unlikely to ease this year.
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Questions? Ask Dan Flynn today at 312-264-4374Daniel Flynn