Photo by Jesse Gardner on Unsplash

We kickoff the month with Unemployment at 7:30 A.M., S&P Global Manufacturing PMI Final at 8:45 A.M., ISM Manufacturing PMI Final, ISM Manufacturing Employment, ISM Manufacturing New Orders, ISM Manufacturing Prices, and Construction Spending at 2:00 P.M., Baker Hughes Oil & Total Rig Count at 12:00 P.M., Cotton System, Fats & Oils, and Grain Crushings at 2:00 P.M.

China overnight added economic stimulus to its economy by reducing the reserve ratio that banks must hold on foreign currency to 4% from 6% along with providing new incentives for its beleaguered property sector, and tax incentives for child care and education. Slowly, China’s economy is starting to gain traction following months of post Covid showing.

On the Corn Front there were no added September corn deliveries and open interest in corn showed a gain of 7,739 contracts. There is no evidence of the return of near normal rainfall into the middle of September. Rainfall will increase across the Northern Plains and Upper Lakes States after September 7^th, but there is no evidence of a pattern change that would produce near or above normal rainfall through mid-September. The 4-Week period from mid-August to mid-September will be one of the driest and warmest ends of a US growing season on record. The adverse weather is pushing crop maturity to yield. The Midwest corn harvest will be in full swing by September 21^st. In the overnight electronic session the December Corn  is currently trading at 484 ¼ which is 6 cents higher. The trading range has been 484 ½ to 477 ½.

On the Ethanol Front producers grapple with uncertainty with the lack of guidance on tax credits leaves ethanol plants guessing as they plan investments. Between ongoing fights with the EPA and tac credit support clean energy for carbon capture under the Inflation Reduction Act (IRA) with the claim to credits will not be released until mid-2024. There were no trades or open interest in ethanol futures.

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