Image Source: Unsplash

The day was kicked off with the Fed Bowman Speech at 3:15 A.M., followed by the MBA 30-Year Mortgage Rate, MBA Mortgage Applications, MBA Mortgage Market Index, MBA Mortgage Refinance Index, and MBA Purchase Index data at 6:00 A.M. Next came the PPI month-over-month & year-over-year, Core PPI month-over-month & year-over-year, and PPI Ex Food, Energy and Trade numbers at 7:30 A.M. 

Following this was the Fed Waller Speech at 9:15 A.M., and then the 17-Week Bill Auction at 10:30 A.M. and Fed Bostic Speech at 11:15 A.M. Finally, the 10-Year Note Auction at 12:00 P.M. and the FOMC Minutes at 1:00 P.M. round out the data before EIA Energy Stocks information is revealed at at 3:30 P.M.

On the corn front, futures were trading a little easier in the early morning period, ahead of tomorrow’s Crop Production USDA Supply/Demand and WASDE data. Open interest on corn grew 6,388 contracts in yesterday’s action. Tomorrow's data may also reflect this revival in market action.

The harvest of corn reached approximately 23%, and crop ratings have been holding steady at around 53%, but the true price driver has been Brazil exporting record large corn and soybeans. However, the northern two-thirds of Brazil appear set to record below-normal amounts of rainfall, as well as temperatures in the 90's and lower 100's.

Argentina will be dry for the next 10 days as they deal with El Niño. Any prevention of further selloffs in the US market will highly depend on yields. In the overnight electronic session, the December corn was seen trading at around 484 ½, which is 1 and a ¼ of a cent lower. The trading range has been 487 ¼ to 484 ¼.

On the ethanol front, there have been whispers that India is set to restrict to sugar exports on rising domestic prices. India’s sugar export ban has been rumored in the cash market for more than a month, but inaction from the government has produced a rush exportable supply. Traders will be watching if India will actually ban exports of sugar to prevent future domestic price rises.

It should be noted that this comes at a time when Brazil and India are working together with ideas of curbing greenhouse gas (GHG) and improving sugarcane-based ethanol as they attempt to achieve net-zero carbon emissions. There were no trades or open interest in ethanol futures.

More By This Author: