Harvest Moving Along Swiftly. The Corn & Ethanol Report

We start off the day with Housing Starts and Building Permits(SEP) and Housing Starts and Permits MoM (SEP) at 7:30 A.M., Redbook YoY and MoM (17/OCT) at 7:55 A.M., Fed Quarles Speech at 9:50 A.M., 119- Day and 42-Day Bill Auction at 10:30 A.M., Fed Evans Speech at 12:00 P.M., Milk Production at 2:00 P.M., and API Energy Stocks at 3:30 P.M.

On the Hurricane Front Disturbance 1 a trough of low pressure has formed over the western Caribbean Sea and extends northward across western Cuba. As of Mondays, update at !;00 P.M. CST the storm has a 10% chance of Cyclone Formation in the next 48 hours. While a new Tropical Storm Epsilon is expected to be at or near hurricane strength as it approaches Bermuda late this week. The current cone poses a risk to the U.S. upper-eastern coast and Canada. We will keep you posted as events unfold.

On the Corn front, harvest is moving along and ahead of schedule and yields are looking pretty good. We should be wrapping up harvest in the not so distant future with certain states already done harvesting soybeans. We also want to keep an eye on exports, I do expect another round of Chinese buying and Mexico to follow through with steady buying. In the overnight electronic session, the December corn is currently trading at 405 ½ which is ¼ of a cent higher. The trading range has been 407 ½ to 403 ½.

On the Ethanol front, a report predicted growth in Brazilian corn ethanol production. This is coming at a time when they are slapping a duty on U.S. ethanol imports. This could lead to another round of exchanges of tariffs between the two countries. Brazil is expected to reach 25 billion liters (660.43 million gallons) during the 2020-21 marketing year. There have been plentiful and cheap corn supplies in the west-central region of Brazil that attracted investment in the corn ethanol sector over the past few years. There are currently 16 ethanol plants in the country with four of the facilities corn only plants and the remaining facilities are flex plants that produce ethanol from corn and sugarcane. There were no trades posted in the overnight electronic session. The November contract settled at 1.469 and is currently showing 1 bid @ 1.300 and 0 offers with Open Interest at 63 contracts.

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