We start off the day with Michigan Consumer Expectations Prel m(Sep), Michigan 5-Year Inflation Expectations Prel (Sep), Michigan Consumer Sentiment Prel (Sep), Michigan Inflation Expectations Prel (Sep) and Michigan Current Conditions Prel (Sep) at 9:00 A.M., NY Fed Treasury Purchases TIPS 1 to 7.5 yrs. at 9:30 A.M. and Baker Hughes Oil and Total Rig Count at 12:00 P.M.
On the Hurricane Front remnants from Nicholas are moving north over Louisiana at 7 mph. Disturbance 2 located 150 miles east of Cape Hatteras, North Carolina remains long and elongated and has a high chance of formation 70% in the next 48 hrs., Disturbance 1 is a tropical wave and broad area of low pressure located midway between the Lesser Antilles and Cabo Verde Islands. We will be watching this one closely as the conditions are high 70% of formation in five-days and could pose a major threat to the Gulf region. Disturbance 3 is forming off the coast of Africa with formation chance low at 10% in the next 48 hrs.
On the Corn Front the market has consolidated after gains this week while watching and waiting on harvest news and clues to Chinese demand. In the overnight electronic session, the December corn is currently trading at 523 which is 6 ½ cents lower. The trading range has been 530 ½ to 522 ¾.
On the Ethanol Front the Brazilian sugarcane industry association has announced that the production of anhydrous ethanol by mills in the south-central region of the country was up significantly in the second half of August. According to UNICA, mills in the region processed 43.13 million metric tons of sugarcane which is up 2% from a year ago. Brazil is swinging to export more ethanol and become a bigger player in the market.
Have A Great Trading Day!
Dan Flynn