All Eyes On Hurricane Delta. The Corn & Ethanol Report

We started off the day with MBA Mortgage Applications (02/OCT), and MBA 30-Year Mortgage Rate (02/)CT) at 6:00 A.M., Fed Barkin Speech at 9:00 A.M., EIA Energy Stocks at 9:30 A.M., 105-Day and 154-Day Bill Auction at 10:30 A.M., 10-Year Note Auction at 12:00 P.M., FOMC Minutes and Fed Williams Speech at 1:00 P.M., Fed Kashkari Speech at 1:15 P.M., Fed Williams Speech and Consumer Credit Change (AUG) at 2:00 P.M., Fed Evans speech at 3:30 P.M., and the Vice Presidential Debate at 8:00 P.M.

On the Hurricane Front, Hurricane Delta will affect portions of the Cayman Islands, western Cuba, and the northern Yucatan Peninsula through midweek. Texas will feel the path in their eastern coastline which could disrupt the Houston Shipping Channel. While life-threatening storm surge and dangerous hurricane-forced winds, especially along the coasts of Louisiana and Mississippi beginning Friday. Further storm surge and hurricane watches will be issued today for portions of the northern Gulf Coast.

On the Corn front, the market rallied on talk of lower U.S. supply and higher export demand. Dry weather in Argentina, Brazil, and the Black Sea were supportive. Also, the funds remain net-long and China’s holiday, Golden Week that started last Friday, October 1st, still had rumors persist that China was buying U.S. corn and soybeans yesterday. Hot and dry weather in the Corn Belt the rest of the week should ramp up harvest to even better numbers. There is also a story that there may be delays in opening the Illinois River’s, Peoria Lock and Dam to navigation, which could disrupt grain flows according to Allen a. Marshall, a spokesman for the U.S. Army Corps of Engineers. In the overnight electronic session, the December corn is currently trading at 388 ½ which is 3 ½ cents higher. The trading range has been 389 to 384.

On the Ethanol front, not a whole lot of new headlines as the market prepares for this morning’s EIA Energy Stocks and brace for Friday’s USDA data for corn to ethanol use. There were no trades posted in the overnight electronic session. The November ethanol settled at 1.381 and is currently showing 4 bids @ 1.380 and 1 offer @ 1.395 with Open Interest at 68 contracts.

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Mad About Money 7 months ago Member's comment

Trump opening his mouth has a lot more of an impact than 10 such hurricanes! LOL