Photo by Adrian Infernus on Unsplash

We kicked off the last day of the month with MBA Mortgage Market Index (26/Aug), MBA Mortgage Refinance Index (26/Aug), MBA Purchase Index (26/Aug) MBA Mortgage Applications (26/Aug) and MBA Mortgage Rate at 6:00 A.M., Fed Mester Speech at 7:00 A.M., ADP Employment Change (Jul),and ADP Employment at 7:15 A.M., Chicago PMI (Aug), EIA Energy Stocks at 9:30 A.M., Dairy Product Sales at 2:00 P.M., and Fed Bostic Speech at 5:30 P.M.

On the Corn Front we ended up lower in yesterday’s action with long liquidation, month end, and harvest pressure mounting. Uncertainty on foreign exports coupled with logistics and the global economies added to the downfall. We do believe as exports pick up it will overcome harvest pressure this autumn, as the importers want to be fully stocked this winter, as food prices and energy prices are on the rise.

There is also fear in crops in South Dakota and Ohio, which will keep volatility high. I do expect higher prices as exports will pick up. In the overnight electronic session the December corn is currently trading at 665 ¼ which is 12 cents lower. The trading range has been 680 ½ to 667 ¼.

On the Ethanol Front the EPA sets alternative RIN retirement schedule for small refineries under the Renewable Fuel Standards for compliance year 2020. Global exports, especially to Canada should be a boon for the industry as ethanol futures are showing zero interest.

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