Hurricane Season Underway. The Corn & Ethanol Report
We started off the day with NY Empire State Manufacturing Index (Aug) at 7:30 A.M., NY Fed Treasury Purchases 10 to 22.5 yrs. at 9:30 A.M., Export Inspections at 10:00 A.M., 3-Month and 6-Month Bill Auction at 10;30 A.M., Crop Progress, Overall Net Capital Flows (Jun), U.S. Foreign Bond Investment and Net Long-Term TIC Flows at 3:00 P.M.
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On the Hurricane Front a forecast of a slower hurricane season is already at odds with reality. We are charting three tropical storms in the Atlantic Tropical Storm Fred is churning in the Gulf of Mexico and Tropical storm Grace looks like it will follow the same path as Fred. Tropical Storm eight looks to be on a collision course with the Carolina’s. We will keep you posted on these storms.
On the Corn Front Kansas farmers are expected to have a smaller harvest which is another bullish signal with the reality of little carryover and South America’s crop in question. The resistance in the market is Chin’s economy that the covid crisis is keeping them on the sidelines. I do expect them to come back in the market very soon. In the overnight electronic session the December corn is currently trading at 573 ¾ which is ¾ of a cent lower. The trading range has been 576 to 568 ½.
On the Ethanol Front another casualty of the deteriorating market. Equistar Chemicals on Friday said that they will be shutting down their plant in Tuscola, Illinois in October due to poor market conditions. The September contract settled at 2.220 and is currently showing no market and zero Open Interest.
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