We started off the day with Michigan Consumer Sentiment Prel (Aug), Michigan 5-Year Inflation Expectations Prel (Aug), Michigan Consumer Expectations Prel (Aug), Michigan Inflation Expectations Prel (Aug) and Michigan Current Conditions Prel (Aug) at 9:00 A.M., Baker Hughes Oil and Total Rig Count at 12:00 P.M.

image source

On the Corn Front the weaker yields have it. The USDA lowered the U.S. corn crop more than expected and the market shot up like a cannon. Increased farmer selling near the highs caused the market to sell off from the highs. Some areas have sold their 2020 carryover and a slow export market contributed to the selloff. China closed their #1 port due to Covid and a new five-year plan restricting private business’s also offered resistance in equities and outside markets. The USDA estimates for the corn crop came in at 14,750 million bushels vs. expectations 15,165 (mb). Yields were 174.6 vs. 179.5, carryout was 1,242 vs. 1,432. Feed was lowered 25 but exports also dropped 75. World corn end stocks were at 284.6 (mmt) vs. 291.2 (mmt) while Brazil’s crop lowered to 87.0 vs. 93.0. We are hoping to see this marker regather it’s legs and this week’s storms in the Midwest have damaged the crop in Iowa, Illinois, Wisconsin, and Indiana. In the overnight electronic session, the December corn is currently trading at 577 ¼ which is 4 cents lower. The trading range has been 577 ¾ to  566 ¼.

On the Ethanol Front the drought has dragged down production in Nebraska, Dakota’s, and Minnesota. The overall picture is the lowest production since May while the futures markets remain silent. There were no trades posted in the overnight electronic session. The market settled at 2.220 and continues with no volume and zero Open Interest. I do see an export market gaining strides while domestic use is leveling out.