Calm Before The Storm - The Corn & Ethanol Report

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Photo by Demian Tejeda-Benitez on Unsplash

 We kickoff the day with MBA 30-Year Mortgage Rate, MBA Mortgage Applications, MBA Mortgage Market Index, MBA Mortgage Refinance Index, and MBA Purchase Index at 6:00 A.M., New Home Sales and New Home Sales MoM at 9:00 A.M., EIA Energy Stocks and NY Treasury Purchases 10 to 22.5 years. At 9:30 A.M., 17-Week Bill Auction and 2-Year FRN Auction at 10:30 A.M., 5-Year Note Auction at 12:00 P.M.,  Cold Storage and Dairy Products Sales at 2:00 P.M., Fed Chair Powell Speech, Building Permits Final, and Building Permits MoM Final at 3:35 P.M.

On the Corn Front the EIA update on retail fuel prices showed that the national average gasoline price was down $0.4/gallon last week marking the 5th consecutive weekly decline. The EIA also showed with risk premium leading the technical selloff which was technical failure on the charts. We still need to consider the global environment and the EIA also showed draws in crude oil stockpiles by -2-668M, builds in Cushing, Oklahoma +0.513M, draws on gasoline of -4,169M, and distillates were also down at -2.313M. Fuel prices in October have been below a year ago, which will further pull inflation rates lower in the CPI report. Whether this continues in November will largely determined by crude oil prices. The South American weather pattern remains stuck, excessive rain in Southern Brazil, deepening drought in the North. Additional light rain is offered in Central Brazil Thursday and Friday. While Argentina’s topsoil moisture has been replenished across the core section of Argentina’s Ag Belt. Back in Chicago mediocre volume remains in the ag Markets as we wait and see how things are going to unravel in the Middle East as we will have a busy day with several headlines in the making today. It is like hurry up and wait or when will this escalate further hampering the commodity export maritime lanes. In the overnight electronic session the December corn is currently trading at 482 ¾ which is 1 and a ¼ of a cent lower. The trading range has been 586 to 481.

On the Ethanol Front ADM reports a strong Q3 for ethanol, and Growth Energy had a press release, Wecoming Cargill as it’s newest member, Growth Energy, the leading voice of America’s biofuels industry, recently welcomed Cargill who connect with farmers with markets, customers with ingredients, and families with daily essentials-from food to feed to flooring. The company has been a long-time leader in the production of ethanol and other biobased solutions to environmental challenges throughout the agricultural and industrial supply chains. Cargill produces ethanol at its US facilities in Blair, Nebraska, Eddyville, Iowa, and Fort Dodge, Iowa. Growth Energy CEO Emily Skor said, “Tapping into the full potential of American agriculture to deliver-meaningful, low-carbon solutions is at the heart of our mission hear at Growth Energy. No one understands that work better than our new members at Cargill. They have been a long-time pioneer in the bioindustrial space, and we’re excited to work with their innovative team to unlock a new era for the American bioeconomy.” Cargill Managing Director of Starches, sweeteners, and textarizers, Food Solutions Americas, Mike Wagner said, “Growth Energy has an exceptional team focused on the future of clean energy, and we are excited to join forces to advocate for new technologies and opportunities in American agriculture. We look forward to strengthening our collaboration with industry allies and partners who share our vision for sustainable solutions and an expanding bioeconomy.” There were no trades or open interest in ethanol futures.

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