Turnaround Wednesday: The Corn & Ethanol Report

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Today's events include MBA Mortgage Applications (Sept. 3) and MBA 30-Year Mortgage Rate (Sept. 3) at 6:00 a.m., Redbook at 7:55 a.m., IBD/TIPP Economic Optimism (September) and JOLTs Job Openings (July) at 9:00 a.m., NY Fed Treasury Purchases TIPS 1 to 7.5 years. at 9:30 a.m., 10-Year Note Auction at 12:00 p.m., Fed Beige Book at 1:00 p.m., Consumer Credit Change (July) and Dairy Product Sales at 2:00 p.m., and API Energy Stocks at 3:30 p.m.

On the hurricane front, Hurricane Larry will continue to affect the Leeward Islands, portions of the Greater Antilles, and the Bahamas today. The storm is moving northwest at 9 knots. Disturbance 1 is one we’re going to watch, it has a 50% chance of formation in the next 48 hours.

It is expected to move northeastward over the northeastern Gulf of Mexico. It is expected to make landfall in the eastern Gulf coast and close to New Orleans. We will keep you posted on further developments.

On the corn front, we steadied out after the U.S. corn crop condition dropped. As of Sunday, the U.S. had 95% of the corn crop at the dough stage vs. the 94% for the five-year average. Also, 74% of the nation’s corn is in the dent growth stage vs. the 69% for the five-year average.

The USDA pegged 21% of the crop as mature vs. the 195 five-year average. On Monday, the U.S. good to excellent rating dropped 1%, marked at 59%. In the overnight electronic session, the December corn has been recently trading at 514 ¾, which is 4 cents higher. The trading range has been 515 ½ to 510 ¾.

On the ethanol front, a group of nine democratic lawmakers on Sept. 2 sent a letter to the Speaker of the House Nancy Pelosi and Senate Majority Leader Chuck Schumer urging them to include support for biofuels in the upcoming reconciliation package. Growth Energy applauded efforts to include support for biofuels in this package. As the ethanol industry continues to do battle with government mandates, the futures markets have 0 Open Interest.

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