We kicked off the day with LMI Logistics Managers Index Current at 4:30 A.M., IBD/TIPP Economic Optimism, Factory Orders MoM, and Factory Orders ex Transportation at 9:00 A.M., Export Inspections at 10:00 A.M., 3-Month & 6-Month Bill Auction at 10:30 A.M., 52-Week Bill Auction and Total Vehicle Sales at 12:00 P.M., Dairy Products at 2:00 P.M., and Crop Progress at 3:00 P.M.

Photo by Christophe Maertens on Unsplash

On the Corn Front I visited Northern Illinois and Southern Wisconsin and I am struggling why prices are so low. The answer I received was low demand which can’t light a fire to see above $5 corn. Traders will be waiting for the Crop Progress to see what condition crops are in after the Labor Day Weekend. We are also a week away from the September 12^th Crop Production USDA Supply/Demand and WASDE data. But we will get the grim reality at the combine when harvest begins mid-month. Ag Resources reports several private crop estimates will be available this week with Stone X releasing their estimates tomorrow afternoon. We do expect crop deterioration with unfavorable hot and dry Central US weather conditions. Another reason for the choppiness, Reuters reports that Turkish President Erdogan stated that the Black Sea grain deal can be restored soon, while Bloomberg and Russian media suggested that talks ended without reviving the grain deal and Russia will not allow Ukraine to ship through the Black Sea until obstacles for Russia’s own ag exports are removed. We still wait to see if this morning’s Export Inspections will show any sign of life of US exports. I am not holding my breath for the Black Sea grain deal with Russia sending a clear message attacking Odessa and Danube grain facilities in the Ukraine. In the overnight electronic session the December corn is currently trading at 479 ¾ which is 1 ¾ of a cent lower. The trading range has been 486 to 478 ¾.

On the Ethanol Front Energy Agwired.com reported that Mackenzie Boubin, Director of Global Ethanol Export Development for the US Grains Council, gave an update on the outlook for ethanol exports at the recent Coalition for Ethanol (ACE) annual conference in Minneapolis. “The United States represents over half of the ethanol production in the world”, Boubin said. “For the marketing year, we’re over one billion gallons. So we take ten percent every year Boubin says, exports are down about 200 million gallons from last year mainly due to Brazil and China. “Despite those two markets, the fact we’re diversifying more than ever, nearly 100 countries are taking our product, shows that we really do have a competitive advantage,” she said. There were no trades or open interest in ethanol futures.

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