Hurricane Sally Strikes. The Corn & Ethanol Report

We started off the day with Export Sales, Building Permits (AUG), Building Permits MoM (AUG), Housing Starts (AUG), Housing Starts MoM (AUG), Initial Jobless Claims (12/SEP), Jobless Claims 4-Week Average (12/SEP), Philadelphia Fed Manufacturing Index (SEP), Continuing Jobless Claims (05/SEP), and Wholesale Trade at 7:30 A.M., EIA Gas Storage at 9:30 A.M., 4-Week & 8-Week Bill Auction at 10:30 A.M., 10-Year TIPS Auction at 12:00 P.M., and Milk Production at 2:00 P.M.

Now that Hurricane Sally made landfall and tracking her path of heavy rains which is now moving northwestward, we also are watching Disturbance 1 which has become better organized and could form into a Tropical Depression later today over the southwestern Gulf of Mexico. Hurricane Teddy is expected to become a major hurricane later today and the current cone has it striking Bermuda at 2:00 A.M. Monday and veering eastward and potentially not threatening the U.S. coastline. Tropical Storm Vicky moving west-northwest at 6 knots and the path is changing to the south-southwest and expected to dissipate by early Saturday morning, while Disturbance 3 located over the far Atlantic Ocean a few hundred miles east-northeast of the Azores with a 10% chance of Cyclone Formation in the next 48 hours.

On the Corn front, funds have stepped in and added to their net long positions in yesterday’s action, and even in an overbought market, the market is traded above Tuesday’s high which technically is a significant signal in which we could see even higher prices with China purchases a wildcard and U.S. farmers reluctant to sell at these current levels until they digest the actual yields their fields will produce. As of Sunday, the corn harvest was 5% picked and 2020 so far has proved to this is not your average run of the mill harvest or hurricane season. In the overnight electronic session, the December corn is currently trading at 372 ¼ which is a ½ of a cent higher. The trading range has been 373 to 369 ½.

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