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The Corn & Ethanol Report

Daniel Flynn

The Corn & Ethanol Report 09/21/17

Happy Rosh Hashanah

Good Morning!

This morning we kick off the day with Export Sales and Initial Jobs at 7:30 A.M. followed by EIA Gas Storage at 9:30 A.M. After yesterday's FED decision, S&P Global Ratings cut China's sovereign credit rating for the first time since 1999, citing the risk of from soaring debt, and revised its outlook to stable from negative. S&P was quoted, "China's prolonged period of strong credit growth has increased its economic and financial risks." Reported from Bloomberg News. Time will tell what affect this will have in the U.S. marketplace, if any, as investors do see credit agencies ratings as gospel since the financial crisis.

On the Corn front harvest pressure is about to rear its ugly head. With crop rating news and with a large carry-in, producers are sitting on their hands at these price levels. We could see further lows but we could see some investors bottom feeding trying to buy value at low prices. In the overnight electronic session the December Corn is currently trading at 349 ½ which is a ½ of a cent lower. The trading range has been 351 to 349.

On the Ethanol front there were no trades posted in the overnight electronic session. The October contract settled at 1.538 and is currently showing 1 bid @ 1.527 and 2 offers @ 1.539 and further declines in Open Interest at 312 contracts.

On the Crude Oil front after a bullish EIA inventory number and the FED holding pat on Interest Rates, Janet Yellen had the market selloff after her verbiage. In the overnight electronic session the November Crude Oil is currently trading at 5027 which is 42 points lower. The trading range has been 5079 to 5007.

On the Natural Gas front we have the weekly EIA Gas Storage data today. The Thomson Reuters poll with 25 analyst participation expect injection builds anywhere from 84 bcf to 100 bcf with 91 bcf the median. This compares to last week's build of 91 bcf, the 1 year at 54 bcf and the five-year average at 73 bcf. In the overnight electronic the October contract is currently trading at 3.074 which is 2 cents lower. The trading range has been 3.091 to 3.069.

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