Photo by Jesse Gardner on Unsplash

We kickoff the day with Unit Labour Costs QoQ Final, Nonfarm Productivity QoQ Final, Initial Jobless Claims, Jobless Claims 4-Week Average, and Continuing Jobless Claims at 7:30 A.M., Fed Harker Speech at 9:00 A.M., NY Fed Treasury Purchases 22.5 to 30 yrs. and EIA Natural Gas Storage at 9:30 A.M., EIA Energy Stocks at 10:00 A.M., 4-Week & 8-Week Bill Auction at 10:30 A.M., 15-Year & 30-Year Mortgage Rate at 11:00 A.M., Dairy Products Sales at 2:00 P.M., Fed Williams Speech at 2;30 P.M., Fed Bostic Speech at 2:45 P.M., Fed Bowman Speech at 3:55 P.M., and Fed Barr Speech at 11:00 P.M.

On the Corn Front this morning’s Jobless Claims came in at 216 which the street was looking for 228. It is no time to do a victory lap. With yesterday’s closing of (ANWR) a wildlife refuge in Alaska and Saudi’s sticking with production cuts as we have to replenish the Strategic Petroleum Reserves (SPR’s). This will only equal higher electric, energy, food, and gasoline prices at the pump. Furthering fueling runaway inflation, with diesel prices out of control and farmers beginning harvest in some areas, the cost will be pushed to the consumer. July corn exports totaled 94 million bushels, a very unimpressive historical number but a full %0% above FGIS inspected shipments during the month. Stone X estimated corn yields to be at 175.0 BPA. The corn market appears to be setting yields above last year. However extremely early corn yield data has been disappointing. In an industry poll, the average industry estimate of US corn yield is 173.5 BPA, which leaves the market open for a surprise. Next Tuesday’s Crop Production USDA Supply/Demand and WASDE data may shed light on my concerns of lower yields or we will get the cold hard facts at the combine. In the overnight electronic session the December corn is currently trading at 485 ¼ which is a ½ of a cent lower. The trading range has been 486 ¾ to 483 ½.

On the Ethanol Front Erin Voegele with Ethanol Producer Magazine reported yesterday the Minnesota Public Utilities Commission on August 31^st approved the scope of the Environmental Impact Statement for a portion of Summit Carbon Solutions’ proposed CO2 pipeline project that spans approximately 28 miles in two of the State’s counties. Summit in September 2022 filed a route permit application to construct and operate the Otter Tail to Wilkin Carbon Dioxide Pipeline Project, which is an approximately 28-mile, 4.5 inch diameter CO2 pipeline proposed to be constructed in Otter Tail and Wilkin Counties, which are located in west-central Minnesota near the North Dakota border. The project is part of Summit’s larger proposed Midwest carbon Express Project, which would span 5-states, shipping CO2 captured at more than 30 midwestern ethanol plants to sites in North Dakota for secure geological storage. In its August 31^st announcement, the Minnesota PUC said the purpose of scoping is to establish a list of environmental issues that will be further analyzed in the EIS, subject to public review. The Minnesota Department of Commerce’s Energy Environmental Review and Analysis unit conducts environmental reviews on behalf of the PUC for proposed energy projects, including carbon pipelines. A variety of issues will be evaluated in the EIS, including property value impacts, environmental and human impacts, such as quality, watersheds, wetlands, streams, rivers, and water table, environmental justice and cultural impacts and alternative carbon capture technologies. According to PUC, the Department of Commerce  will begin drafting the EIS. Once the draft is complete, the public will have a chance to review and provide comments. The PUC said the environmental review must be completed before it decides whether to issue a permit. There were no trades or open interest in ethanol futures.

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