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Ethanol data continues to flow… Ethanol output jumped to the highest level in a month last week, while inventories declined modestly, according to data from the Energy Information Administration (EIA). Production of the biofuel rose to an average of 1.071 million barrels in the seven days that ended Oct. 3, the U.S. government agency said in a report yesterday. On its website, the agency said it will continue normal publication of reports and data collection until further notice. That is in contrast to USDA reports that have been put on hold or canceled until the government shutdown ends.
In the Midwest, by far the biggest producer of ethanol, production averaged 1.025 million barrels a day, up from 940,000 the previous week, EIA said. That was the lone gainer, as all other regions saw week-to-week declines.
Crude oil futures respond to peace agreement… Oil extended its decline on cautious optimism about easing tensions in the Middle East and the outlook for a global supply surplus. West Texas Intermediate crude slumped below $60, while Brent futures slid below $64, the lowest since June. Israel approved a framework that would see Hamas release hostages in exchange for prisoners, a major step toward a peace agreement to end the bloody conflict in Gaza which has destabilized the Middle East.
Meanwhile, oil markets are heading for a significant surplus fueled by rising output from both outside and within the OPEC+ alliance, which agreed to raise production quotas to reclaim market share over the weekend. The broad mood remains bearish, though there are discrepancies about how gloomy crude’s prospects are, according to Citigroup Inc., which summarized views from clients. -source: Bloomberg
U.S. Refuses to sign-on to World Bank Climate agenda… According to a Reuters Article, Nineteen of the World Bank’s 25 executive directors issued a joint statement this week affirming their support for the bank’s continued work on climate change, defying the U.S., the bank’s largest shareholder, and several other countries. ... The directors, who represent 120 countries, issued the statement after a board meeting with World Bank management, underscoring their expectation that the bank will stick to its climate change action plan goals, including a pledge to devote 45% of its annual financing to climate-related projects.
The document, a copy of which was viewed by Reuters, reflects the deep divide separating most other countries from the U.S. and a handful of allies over climate change. It comes days before the start of the annual meetings in Washington of the World Bank and International Monetary Fund. The U.S. is the largest shareholder in both institutions and plays a big role in shaping their work and agendas.
Canada hints willingness on Keystone XL Pipeline… The trade issues of steel, aluminum, and energy have dominated recent discussions between Canada and the U.S. in Washington. Prime Minister Mark Carney did not come away with a deal or promise of tariff relief from President Trump, but Carney expressed interest in reviving work on the Keystone XL pipeline, and Trump was reportedly receptive to advancing that project.
It’s reported that the Keystone project was raised by Carney involving energy cooperation but was put in the context of getting relief for steel and aluminum tariffs. Yet, on his return to Ottawa, when asked about the Keystone XL issue, the prime minister would only say that the delegation had ‘discussions on a wide range’ of issues.
Texas Ag Commissioner has NWS on the radar… Concern continues to grow over the New World Screwworm outbreak in Mexico. Texas Ag Commissioner Sid Miller says it’s getting dangerously close to the border. In response, he says the Texas ag department has deployed traps at livestock export facilities, including in Brownsville, Del Rio, El Paso, and Laredo. The Commissioner says the traps and bait, along with the sterile fly programs, are critical tools for containing and preventing outbreaks that could threaten ranchers and the agricultural economy.
The robots are coming!... AI, or artificial intelligence, is making its way into U.S. agriculture. Heather Hampton Knodle, president of Knodle Farms in Illinois, recently spoke on AI at the Rural Economic Outlook Conference at Oklahoma State University. She said the technology is already in operation in American agriculture saying, “…for example, in-barn cameras, where you might have confinement or feeding operations, and say, you have thousands of animals there, there are technologies that can kind of track each animal individually and show signs of maybe illness long before we would notice it with our human eye.”
Knodle said one of the biggest barriers to adoption of AI technologies on the farm is internet connectivity.
Notable closes…
The bean market was tripped up by President Trump’s announcement that he will not be meeting with Chinese president Xi at the end of this month.
- November beans were 15 1/2 cents lower at $10.06 3/4
- January beans down 15 1/4 to $10.23 1/4
- March beans closed at $10.37 ½, down 14 ¾
November feeders today opened lower and spiked support at yesterday’s low before recovering to close above yesterday’s high. That means November feeders posted an upside reversal while scoring a new contract high and posting a new-contract-high close.
- December live cattle were $2.62 ½ higher at $242.52 ½
- February live cattle up 2 bucks to $245.40
- November feeders were up $1.85 to $375.90
Your weekend read… One car to rule them all. Heart pounding and head swirling, crunching pine needles in an automotive graveyard dotted with hundreds of transmission tombstones, the looming figure of Travis Bell, sporting a cue ball dome atop a 6’4” frame, walked tight on the trail of a grail.
Zeroing on his prize, Bell softly approached a near-mythical muscle car hidden for decades—the very first 1969 Dodge Charger to take flight and roar into U.S. living rooms during the premier episode of the iconic Dukes of Hazzard.
Bell’s mouth went to cotton: “I can still hear my breathing and feel my lungs getting heavy as I got closer. It couldn’t be, but it was. I stumbled over the first General Lee—the most desired and magical car in television history.”
Finding the buried relic was a feat for the ages, but keeping it hidden was a task extraordinaire…
Read the rest of Chris Bennet’s article on the General Lee at AgWeb.com.