President Trump Headed to Iowa Where He’s Expected to Make Pro-Ethanol Announcement
Around 3 p.m. CST Tuesday in Council Bluffs, IA, President Trump is expected to announce the removal of a ban on summertime sales of E15, thus allowing for year-round sales. This decision would likely be seen as a boost to Republican candidates running in midterm elections in rural states. Senators Joni Ernst and Chuck Grassley, both of Iowa, strongly support the removal of the E15 ban. The summertime ban on E15 sales was initially put in place to reduce smog emissions during peak driving season but studies have shown the ban to have marginal benefits. President Trump is expected to instruct the EPA to fast-track the ban removal in order for E15 sales to be ready for the next driving season.
Speculators Unwind Some of Their Shorts for Corn, Soybeans Amid Surging Exports and Heavy Rains in Midwest
For the week ending on Oct 2, managed money reduced their net short position for corn by 57,468 to 67,387 contracts, cutting their shorts nearly in half. This is the smallest net short position maintained by speculators since Aug 21. Money managers also reduced their net shorts in soybeans by 17,248 to 42,878 contracts, also the smallest since Aug 21. Increased export demand for US origin grain and the weather forecast calling for a particularly wet October may have caused some of the bearish pressure to ease. Managed money turned bearish on Chicago SRW, moving from a net long position of only 227 contracts last week to being net short by 11,708 contracts this week. Speculators also cut their net long position in KC HRW by 5,835 to 22,841 contracts net long.
Flash Flood Warnings and Watches in Place Across Much of Western Corn Belt
Flash flood warnings and watches are in effect from areas in S Texas all the way to N Wisconsin, with low lying areas near rivers being particularly at risk. Counties along the Kansas-Missouri border are under a flood warning after seeing heavy rains over the weekend and with 1-2 inches more in the forecast. E Iowa and W Illinois, areas that have struggled with excessive rain over the past few weeks, are expecting more thunderstorms tonight, bringing 1-3 inches of rain and the possibility of the Mississippi River flooding.
The risk of trading futures, hedging, and speculating can be substantial. FBN BR LLC (NFA ID: 0508695)
