On the corn market, we have limited demand recovery, easing weather concerns and a positive Crop Progress report that pushed corn to a 1-month low. December corn settled at 330 after making a low of 329. The market did not completely drop as we saw an uptick on US export demand.
Weather forecast are expecting better weather for most of the Corn Belt, with much needed rain in the southern Midwest, with scattered showers today and more rains expected the rest of the week. December corn is currently trading at 330 ½ which is a ½ of a cent lower. The trading range has been 331 ½ to 329 ¾.
On the ethanol front Mark Anderson with the Sacramento Business Journal reports that Pacific Ethanol (NASDAQ:PEIX) plans to double its high-grade alcohol production this year in order to make more hand sanitizers, disinfectants and other products widely used. Their Pekin, Illinois plant will be able to produce 140 million gallons of high-quality alcohol per year.
Mike Kandris, Pacific Ethanol’s co-CEO said, “Our diversification strategy is paying dividends as is our success expanding our presence as a leading provider of high-quality alcohols.” Pacific Ethanol shares rose 22 cents, or 20.8% on the news Monday closing at 1.28 per share. There were no trades posted in the overnight electronic session. The September contract settled at 1.190 and is currently showing 3 bids @ 1.140 and 1 offer @ 1.190 with open interest at 65 contracts.
Crude oil saw a large draw yesterday of 6.829 million barrels. In today’s action we will be looking at what the EIA data has to say, whether it concurs with the API or not. The markets focus will also be on the Fed Decision at 1:00 P.M. on Interest Rates as lawmakers are dueling over the latest stimulus package. The large draw in crude oil stocks could be associated with Hurricane Hanna and another thing on the traders radar screen is Potential Tropical Cyclone Nine which storm conditions are likely to cross the Leeward Islands, the Virgin Islands and Puerto Rico today spreading westward to the Dominican Republic and Haiti tomorrow. The cone’s current path has it entering somewhere in the Gulf of Mexico. September crude oil is currently trading at 4141 which is 37 points higher. The trading range has been 4156 to 4093.
On the natural gas front today is LAST TRADING DAY in the August contract. The market is trading mostly quiet for the moment after yesterdays gains. But there is that possibility we are in the midst of a cycle change in trade. In the overnight electronic session the September natural gas is currently trading at 1.849 which is .015 lower. The trading range has been 1.866 to 1 .829.