At 10 AM Mountain Time today the USDA will issue its November S&D.
On Wednesday, an EPA auditor gave an agricultural commercial chemical applicator, who does business with one of our clients, a set of new regulations that went into effect Wednesday. The applicator told our client these new regulations will require some serious limitations in 2025. The limited information our client has is that the new regulations have something to do with the Endangered Species Act. If any of you know what is new for farm chemicals for the EPA, please let us know.
Highlights
Yesterday afternoon, the Federal Reserve Announced a 25 basis points (¼%) reduction in the Fed Fund rate. Fed Chairman Powell said, “The economy could perform better next year than previously thought and that inflation remains on a path back to the 2% target.”
As ADM reported, some of the main points were around our unsustainable path regarding debt to GDP, the labor market and inflation losing steam. U.S. Debt to GDP ratio reached over 130% in the second quarter of 2020 and that has been regarded as the auto-default level. Of the 52 countries in the last 224 years to exceed 130%, only Japan has come away from it without defaulting on debt payments.
Susan Stroud of No Bull Ag was talking about soybean oil; yesterday’s weekly export sales:
114,000 mt was the largest single week of bean oil sales in more than 5 years
It was the 7th largest week of sale of all time
It was the same size as ALL sales in CY2023
Soy oil sales are 86% of the current USDA export projection for the marketing year with 11 months to go (soy oil marketing year begins 1 October)
Palm oil prices are rising, almost daily updating to a new high. This may be a reason for buyers to look at other vegetable oils, particularly soybean oil. Last year, soy oil exports from the U.S. were almost absent.