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., ADP Employment Change at 7:15 A.M., S&P Global Composite PMI Final and S&P Global Services PMI Final at 8:45 A.M., ISM Services PMI, Factory Orders MoM, ISM Services Business Activity, ISM Services New Orders, and ISM Services Prices at 9:00 A.M., Fed Schmid Speech at 9:05 A.M., EIA Energy Stocks at 9:30 A.M., Fed Bowman Speech at 10:25 A.M., 17-Week Bill Auction at 10:30 A.M., Dairy Products and Dairy Products Sales at 2:00 P.M.

On the Corn Front Purdue University’s Monthly Ag Economy Barometer reflected declining farm sentiment during September. The Ag Economy Barometer fell 9 points from August to 106, the lowest since June 2022. Compared to a year ago, the index was down 6 points, at the lowest index value for September since 2016. Producer sentiment for both current conditions and future expectations were lower. The Current Condition Index was down 10 points for the month and 11 points lower than a year ago, the first decline since November of last year, Similar concerns were expressed in the Future Expectations Index, which was down 10 points for the month and 4 points less than a year ago at 109.75% of producers indicated that now was a bad time for large capital investments based on machinery and new construction costs, while 32% of farmers said that higher input costs were their largest concern for the year ahead, followed by 25% that worry about rising interest rates. Cost pressures are hurting US farmers. Corn open interest dropped 3,411 contracts in yesterday’s action as exports and weather are also impacting prices, as the economy’s self-inflicted demand destruction. In the overnight electronic session the December corn is currently trading at 486 ¼ which is 1 ¼ of a cent lower. The trading range has been 489 ¾ to 485 ½.

On the Ethanol Front the South Dakota Public Utilities Commisssion on Sept 26^th issued a final order denying a permit filed by Navigator CO2 Ventures LLC to build and operate a CO2 pipeline within the state.  Navigator has paused right of way work in certain areas but said it remains committed to the project. The whole story can be found in Ethanol Producer Magazine reported by Erin Voegele. Once again, we are betting on food vs. fuel, which is not a good combination, because that is what we thrive on. October ethanol futures go off the board today with no trades or open interest.

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