Tidbits, U.S. Economy, Brazilian Corn Demand, EU Imports, Broilers & Ethanol 3/20/25

Tidbits

Federal Reserve Chairman Jerome Powell said yesterday afternoon interest rates will not be changed this month, but he weighed in on the state of the US economy. His outlook was not reassuring, which was not a surprise knowing he hates Trump. Powell said Trump’s policies are one reason why inflation is reigniting. Powell said the Fed sharply reduced its 2025 growth projection for the U.S. economy and noted that uncertainty around the slowing economy is increasing.

Powell has forgotten that if the economy is faltering, inflation is reduced. Inflation this month was reported to be less than expected at the retail and wholesale levels and getting closer to the Fed’s annual target of +2%. Housing starts in February were 1.5 million, versus the expected 1.38 million. Building permits were 1.46 million versus 1.45 million expected. Industrial production was up 0.7% from January versus the expected up 0.3%. Industrial capacity being used in February was 78.2% versus the expected 77.8%.

U.S. crude oil data showing larger-than-expected inventories rose 0.4% to 437 million barrels, about 5% below the five-year average, while gasoline stocks declined less than expected. Crude oil production remained steady at 13.6 million bpd. Crude imports fell 1.5% to 5.4 million, the lowest level since March 2023, with imports from Canada decreasing to a two-year low of 3.1 million barrels per day, down 15% week-over-week. Additionally, oil stored in the Strategic Petroleum Reserve increased a bit to 395.9 million barrels.

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