Markets Moving! The Corn & Ethanol Report

We started off the day with Export Sales, Initial Jobless Claims (19/SEP0, Jobless Claims 4-Week Average (19/SEP) and Continuing Jobless Claims (19/SEP) at 7:30 A.M., Treasury Secretary Mnuchin Testimony, Fed Chair Powell Testimony, New Home Sales MoM (AUG), and New home Sales (AUG) at 9:00 A.M., EIA Gas storage at 9:30 A.M., Kansas City Fed Manufacturing Index (SEP)  at 10:00 A.M., 4-Week and 8-Week Bill Auction at 10:30 A.M., Fed Evans speech and 7-Year Note Auction at 12:00 P.M., Fed Williams speech at 1:00 P.M., and HOGS & PIGS at 2:00 P.M.

With Remnants of Beta moving northeast in Louisiana, this is the first time in weeks I can say there are no storms that pose a threat in the Atlantic or Gulf of Mexico thanks to the radar and updates from the National Hurricane Center.

On the Corn front, we have seen a dramatic change to the typical harvest selling pressure, with funds liquidating their long-grain positions trying to square up margin calls elsewhere as the currency, Stock market and metals market felt the news of the scrutiny put on banks and money movement. We should see harvest start to pick up in the coming days with drier weather emerges as the rains and cooler temperatures in the Corn Belt slowed the initial start of harvest. In the overnight electronic session, the December corn is currently trading at 363 ¾ which is 4 ¾ cents lower. The trading range has been 368 ¼ to 363.

On the Ethanol Front stocks gained 1% as blending demand keeps a sideways pattern over the last four weeks. At 19.997 million barrels (bbl) domestic ethanol supply added 199,000 (bbl) versus the year-over-year (YoY). Supply deficit narrowed from 15% to 11.1%. These signs tell me the industry learned the benefits this commodity can be used for other than fuel to gasoline. The September contract expires today with 8 outstanding Open Positions. There were no trades posted in the October ethanol and the market is currently showing 2 bids @ 1.165 and 0 offers with Open Interest at 37 contracts. The November contract posted a trade at 1.270 which is .020 lower. % contracts have traded, and the market is currently showing 1 bid @ .265 and 2 offers @ 1.300 with Open Interest at 21 contracts.

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