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We kickoff the day with Core Inflation Rate MoM & YoY, Inflation Rate MoM & YoY, CPI, CPI s.a., Initial Jobless Claims, Continuing Jobless Claims, and Jobless Claims 4-Year Average at 7:30 A.M., EIA Natural Gas Storage at 9:30 A.M., EIA Energy Stocks at 10:00 A.M., 4-Week & 8-Week Bill Auction at 10:30 A.M., 15-Year & 30-Year Mortgage Rate, Crop Production USDA Supply/Demand and WASDE at 11:00 A.M., Fed Bostic Speech and 30-Year Bond Auction at 12:00 P.M., and Monthly Budget Statement at 1:00 P.M.

On the Corn Front The Mortgage Bankers Association’s weekly survey showed that the average interest rate for a 30Year Mortgage had increased 7.67%. This was the 5^th consecutive week rise and the highest rate since November 2000. These numbers are staggering with demand for mortgages and sales have collapsed. The mortgage application has fallen to the lowest level since 1995. The MBA data show that rising rates for fixed-rate mortgages has driven demand for home mortgages below the 2009 housing crisis level to multi-decade lows. This slowing demand will catch the attention of the US FOMC and US Central Bank. Last night’s API showed draws of 12.949 Million barrels of crude with products mixed. With Israel at war and our Strategic Petroleum Reserves (SPR’s) in dire need of replenishing, with only 17 days for needs of National Security around the globe vs. the 33-day norm. Going into winter we will run on energy and fuel. The corn market is trading mostly steady this morning ahead of Crop Production USDA Supply/Demand and WASDE data. Traders are not expecting much of any surprises on the report with corn yields that are slightly less than September at 173.5 BPA. Once the report is released, traders will debate as the corn may return to tepid trade in US corn, with farmers holding back with new crop cash bids at their lowest level since 2019. With weaker exports will have the markets focus on dry El Nino weather in South America and their coming crop size. In the overnight electronic session the December corn is currently trading at 488 ¾ which is ¾ of a cent higher. The trading range has been 489 ¾ to 487.

On the Ethanol Front the EIA maintained its forecast for 2023 & 2024 in yesterdays data. The prediction of fuel ethanol production will average 1.01 million barrels per day this year, falling to 980,000 bpd in 2024. The EIA also predicts fuel ethanol blending will average 920,000 barrels per day this year, down from last month’s forecast of 930,000 bpd. The agency also reduced its forecast for 2024 fuel ethanol blending to 900,000 bpd, down from 910,000 bpd forecast made in September. Fuel ethanol blending averaged 910,000 last year. There were no trades or open interest in ethanol futures.

Have A Great Trading Day!

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