Photo by Waldemar on Unsplash

We kickoff the week with Dallas Fed Manufacturing Index at 9:30 A.M., Export Inspections at 10:00 A.M., 3-Month and 6-Month Bill Auction at 10:30 A.M., 2-Year and 5-Year Note Auction at 12:00 P.M., and Crop Progress at 3:00 P.M.

On the Corn front flash sales shoed soybeans for export of 296 thousand tons to destinations unknown. While 132 thousand corn was destinated to Mexico. As we edge closer to harvest season the Commitment of Traders report showed fund liquidation in the principal agricultural markets. Funds sold about 34,000 contracts of corn, extending their net-short to a 15-week high of 106,000 contracts. Funds also liquidated selling 17,000 thousand soybean meal and unloading wheat contracts on all 3 exchanges.  Yet they were buyers of 7,000 soybean contracts and 8,400 soybean oil. The funds also liquidated 1,500 hog contracts, 7,300 cattle contracts, and 1,300 feeder cattle contracts. Across all 10 markets, funds were net sellers of over 48,000 contracts, cutting the net-long to an 11-week low. Buckle up your chinstrap heading into the 2023 harvest season. We may see harvest pressure to the upside this year. In the overnight electronic session the December corn is currently trading at 493 ¾ which is 5 ¾ cents higher. The trading range has been 494 ½ to 489 ¼.

On the Ethanol Front as we move into the last weekend of the summer driving season with pain at the pump, ethanol fuel becomes more attractive as the greenback is worth almost 20% than 2 years ago. We also cannot forget the many uses that ethanol can be used for, like hand sanitizers any many other uses other than fuel. As demand continues to peak and the economy woes, ethanol will be useful to saving the consumer money with the many uses we discovered during the COVID shutdown that it can provide. There were no trades or open interest in ethanol futures.

Have An Excellent Trading Day!

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