Market Turmoil. The Corn & Ethanol Report

We start off the day with Export Sales, GDP Growth Rate QoQ Adv (Q3), GDP Price Index QoQ Adv (Q3), Initial Jobless Claims (23/Oct), PCE Prices QoQ Adv (Q3), Real Consumer Spending QoQ Adv (Q3), GDP Sales QoQ Adv (Q3),  Continuing Jobless Claims (16/Oct)Core PCE Prices QoQ Adv (Q3) at 7:30 A.M.,  Pending Home Sales MoM & YoY (Sep) at 9;00 A.M., EIA Natural Gas Storage and NY Fed Treasury Purchases 0 to 2.25  yrs. at 9:30 A.M., Kansas Fed Composite Index (Oct) and Kansas Manufacturing Index (Oct) at 10:00 A.M., 4-Week & 8_Week Bill Auction at 10:30 A.M., and 7_Year Note Auction at 12:00 P.M.

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On the corn front, we may be seeing this market back on track. After the Bomb Cyclone, nor’ easter, heavy rains from the west and Canadian cold fronts will trigger frost.  And with harvest moving at a record clip this may be the disruption that will further drive prices. The Export Sales data will show what a struggling economy we have.  With the change of ownership running the economy the shipping and trucking debacle is not what we need as we try to gather our feet from the pandemic. In the overnight electronic session, the December corn is currently trading at 555 ¼ which is 2 cents lower. The trading range has been 557 to 554.

On the ethanol front, there are no fresh headlines as the administration has other goals on their agenda. Like tax and spend in the infrastructure plan. The ethanol futures remain dead in the water.

On the crude oil front, we have had a selloff on increases in fuel stockpiles.  This will be a short-term break and we have a new low of $80 a barrel and will see a test of $100 a barrel. In the overnight electronic session, the December crude oil is currently trading at 8158 which is 108 points lower. The trading range has been 8243 to 8058.

On the natural gas front, the market is in correction mode but the rally is far from over. We have the weekly EIA Gas Storage and the Thomson Reuters poll with 17 analysts participating estimate builds between 77bcf to 94bcf with the median injection of 86bcf. This compares to the one-year withdrawal of 27bcf and the five-year average build of 38 bcf. In the overnight electronic session, the December natural gas is currently trading at 5.932 which is 0.266 lower. The trading range has been 6.206 to 5.894.

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