Chinese Holidays Slowing Cash Market Movement. The Corn & Ethanol Report

We started off the Day with Goods Trade Balance Adv (AUG) and Wholesale Trade Inventories MoM Adv (AUG) at 7:30 A.M.,  Redbook MoM & YoY (26/SEP) at 7:55 A.M. S&P/Case-Schiller Home Price YoY & MoM (JUL) at 8:00 A.M. Fed Williams Speech at 8:15 A.M., Fed Harker Speech at 8:30 A.M., CB Consumer Confidence  (SEP) at (:00 A.M., 119-Day and 42-Day Bill Auction at 10:30 A.M., API Energy Stocks at 3:30 P.M. and U.S. Presidential Debate at 8:00 P.M.

On the Corn front, the market dipped early with reports of steady harvest paces last week and an anticipated slower cash market this week. We should expect rain delays and colder weather in the coming days and into next week. Crops continued to rapidly mature in the dry and warm fall weather. Limited rain in Wisconsin and Indiana had farmers in the fields and harvest ahead of last year and the five-year average. Corn grain is 96% dented. Maturing rapidly 17 days ahead of average and a full month ahead of last year. There are forecast that we will see hurricane activity in the Atlantic and possibly the Gulf Coast pick up as we are not out of hurricane season yet, we could send more rains into the Corn Belt region. There is no activity expected in the Atlantic for the next 48 hours. In the overnight electronic session, the December corn is currently trading at 364 which is 2 ¾ cents lower. The trading range has been 367 ¾ to 364.

On the ethanol front, Cody Rennfeldt with WJAG News Talk in Lincoln, Nebraska spoke about The Next Generation Fuels Act which was recently introduced to the U.S. House of Representatives and the Nebraska Corn Board with the Nebraska Corn Growers Association supports it. Director of Market Development for the Corn Board Jeff Wilkerson says the act recognizes the high octane, low carbon benefits of corn ethanol. Wilkerson says, “ It transition the gasoline supply in the country to a higher octane so greenhouse emissions could be reduced by 40 to 43% and increase your fuel efficiency. He says the research octane number or “RON” would be raised.”  He further said, “when you pull up to the pump you would see a number that we’ve advocating for which is 98RON and it’s aimed at increasing efficiency in engines. To increase efficiency in engines you have to have more octane and when you get E25 and E30 that’s really where you see the seet spot for finding the most efficiencies.” In the overnight electronic session, the October ethanol posted a trade at 1.367 which is .037 higher. The market is currently showing 2 bids @ 1.345 and 1 offer @ 1.367 with 1 contract traded and Open interest at 30 contracts.

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