We kicked off the day with Export Sales, PPI MoM & YoY, Core PPI MoM & YoY, Initial Jobless Claims, Jobless Claims 4-Week Average, and Continuing Jobless Claims at 7:30 A.m., EIA Natural Gas Storage at 9:30 A.M., $-Week & 8-Week Bill Auction at 10:30 A.M., 15-Year & 30-Year Mortgage Rate at 11:00 A.M., 30-Year Bond Auction at 12:00 P.M., Monthly Budget Statement at 1:00 A.M., and Fed Waller Speech at 5:45 P.M.

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On the Corn Front yield numbers shocked a lot of traders in yesterday’s WASDE. Even though it is too early in the game to judge yields the number came in as a surprise with all of the wacky weather we have experienced. We have a recovery of the bearish report that seemed to have a lot of numbers off the mark. Yesterday’s storms with high winds and tornados left a lot of damage in its path with multiple twisters materializing Expect farmers and the USDA representatives surmising yesterday’s data with assessment of the damage that was done after experiencing drought conditions with lack of soil moisture, which became a double-whammy with flood condition worries now. WASDE left the  export balance sheet largely unchanged, but with the US dollar sinking and sinking fast, fund managers will rethink being short in this oversold market as overseas purchasing power will jump and exports should follow.  The addition of 2 million planted/harvested acres was no surprise and the market blew off this number as it was offset by lower carryover supplies due to higher feed and residual use. In the overnight electronic session the December corn is currently trading at 488 ½ which is 4 ¾ cents higher. The trading range has been 490 ½ to 481.

On the Ethanol Front production dives and stocks were higher. The EIA said production averaged 1.032 million barrels a day, 28,000 less than last week, but 27,000 more than last year. The Renewable Fuels Association (RFA) said two key demand indicators were bearish, with net inputs by refiners and blenders and the volume of gasoline supplied to the market both falling from the prior week. Ethanol stocks were reported at 22.658 million barrels a jump of 398,000 from the week before, but a drop of 948,000 barrels from a year ago. The RFA said ethanol exports were at two-year lows, averaging 51,000 barrels a day, 29,000 under a week ago. The USDA expects corn for ethanol use to be 5.225 billion bushels this marketing year, rising to 5.3 billion the next marketing year. There were no trades or open interest in ethanol futures.

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