Photo by Christophe Maertens on Unsplash

We kickoff the day with Redbook YoY at 7:55 A.M., S&P/Case-Shiller Home Price MoM & YoY, House Price Index MoM & YoY, and House Price Index at 8:00 A.M., Jolt’s Job Openings, CB Consumer Confidence, and Jolt’s Job Quits at 9:00 A.M., Dallas Fed Services Index and Dallas Fed Services Revenues Index at 9:30 A.M., 7-Year Note Auction at 12:00 P.M., and API Energy Stocks at 3:30 P.M.

On the Corn Front Crop Progress showed better than expected ratings on the corn and soybean crops following last week’s excessive heat and limited rainfall. The National Agricultural Statistic Services (NASS) indicated the amount of US corn in dent rose 51% with 88% of the crop mature. Weather remains a major factor and hurricane season is in its prime and ocean temperatures high which is a perfect recipe to churn the waters and raise the category of the storms. And on the mainland traders are trying to access the impact of the heat and dryness from August 15^th onward and the resurgence of drought will hurt the 2023 yield potential. Monday’s corn open interest fell by 14,218 contracts. Funds are playing a hand considering weather and yields and Brazilian exports continue to surge with the August lineup estimated at 10.5MMT’s of Brazilian corn. Brazilian corn export commitments are 16% greater than last year on this date reflecting record large world feed grain demand. US flash sales of soybeans and soybean meal to unknown destinations of 105,000 MT of meal and 264,000 MT of soybeans reported this morning. In the overnight electronic session the December corn is currently trading at 495 which is 1 ¼ of a cent lower. The trading range has been 496 ¼ to 491.

On the Ethanol Front demand for wine has fallen so much in France that they are spending $215 million to distill excess wine into ethanol used in cleaning products. Thie is another sign what we learned during the pandemic that showed the many uses for ethanol other than fuel. With world demand for biofuels, ethanol and feed traders will be watching corn and soybean yields. There were no trades or open interest in ethanol futures.

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