Photo by Adrian Infernus on Unsplash

We kickoff the day with Personal Income MoM (Jul), Personal Spending MoM (Jul), Retail Inventories MoM Adv (Jul), Retail Inventories MoM Ex Autos MoM Adv (Jul), Wholesale Inventories MoM Adv (Jul), Goods Trade Balance Adv (Jul), PCE Price Index MoM & YoY (Jul), and Core PCE Price Core MoM & YoY at 7:30 A.M., Fed Chairman Powell Speech, Michigan Consumer Sentiment Final (Aug), Michigan 5-Year Inflation Expectations Final (Aug), Michigan Current Conditions Final (Aug), and Michigan Inflations Final (Aug) at 9:00 A.M., Baker Hughes Oil & Total Rig Count at 12:00 P.M., and the Jackson Hole Economic Symposium Through Saturday.

On the Corn Front we ended up lower in yesterday’s action. US feeders, crushers, and exporters need corn which helps support prices . The Pro Farmer Tour estimates, so far, said corn yields are lower than last year, which in turn supported prices to new highs as inflation volatility remain in all commodities. Ukraine is exporting corn $1.00 lower than the US, with 2023 corn crops could offer resistance to corn futures. In the overnight electronic session the September corn is currently trading at 661 ¼ which is 3 ¾ higher. The trading range has been has been 665 ½ to 654 ¾.

On the Ethanol Front capacity is down slightly in 2022. The US was home to 192 fuel ethanol plants with combined capacity of 17.38 billion gallons per year as of the first of this year, according to data released by the EIA capacity fell bu five plants and 166 MMgy when compared to Jan. 1 2021 This leads me to believe the administration energy policy is on the wrong track. The cash market is moving and the ethanol futures remain out of commission.

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