You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Business

  • Government ups air bag warning to 7.8M vehicles
    The U.S. government is adding more than 3 million vehicles to a rare warning about faulty air bags that have the potential to kill or injure drivers or passengers in a crash.
  • Japan’s exports up in September, deficit persists
      TOKYO – Japan’s trade deficit edged higher in September though exports rose more than expected as the yen weakened to a near six-year low, the Finance Ministry said Wednesday.
  • Kleenex maker plans 1,300 cuts
    DALLAS – Kimberly-Clark plans to eliminate up to 1,300 jobs as part of restructuring efforts aimed at reducing costs and making its business more efficient.
Advertisement

Column: Corn price collapses amid large stockpiles

Breitinger

A USDA report released Monday showed the U.S. stockpile of corn was higher than expected, causing a sharp selloff.

In the aftermath of that report, corn declined to $4.35 per bushel, the lowest price since 2010.

The report confirmed the U.S. is no longer perilously short of corn as we were last summer, when prices topped out at $8.06 per bushel.

Corn’s decline is certainly painful for farmers who produce the grain, but is welcome news to end-users such as ethanol producers, livestock feeders and food manufacturers, who all benefit from lower prices.

In the coming weeks, market participants will be warily watching weather and final yield estimates for indications about the size and health of the corn crop being harvested this fall.

As of midday Friday, corn for December delivery was trading at $4.40 per 56-pound bushel.

Tropical Storm Karen sparks gasoline market

Earlier this week, gasoline futures fell to a nine-month low, primarily driven by fears the government shutdown could cause a weaker economy and drain demand for the fuel.

During the last month, prices have fallen 46 cents a gallon (- 16 percent) as domestic supplies climbed and the economic outlook soured.

By Friday, the gasoline market partially rebounded on fears Tropical Storm Karen would hit Louisiana this weekend at or near hurricane strength, potentially knocking out refineries along the Gulf Coast.

This would create a temporary supply shortage, which helped gas prices bounce four cents a gallon off their low.

As of midday Friday, November gasoline futures, which represent the wholesale price for the fuel without taxes or other fees included, were trading at $2.61 a gallon.

Flying blind without Uncle Sam

The government shutdown that began Tuesday has had far-reaching effects for commodities producers and traders who depend on the federal government for statistics about the markets.

As the standoff in Congress continues, market participants are bracing themselves for a lack of fresh data because of federal agencies’ closures.

Among the reports that could go missing are updates on crop progress, tallies of domestic crude oil and natural gas supplies, export statistics, unemployment figuresand national price data on cattle and hog sales.

Without this critical information, some markets may be forced to pare back trading until the underlying fundamentals are better known.

Walt Breitinger is a commodity futures broker in Valparaiso. He can be reached at (800) 411-3888 or www.indianafutures.com. This is not a solicitation of any order to buy or sell any market.

Advertisement