ADM Leak: BAD LOOK for Pipelines and Carbon Capture

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🌍 ADM Suspends Carbon Capture Project

ADM has halted CO2 injection at its carbon capture and storage site in Illinois following the discovery of a potential leak underground. This site, one of the first of its kind in the US, aims to combat climate change, but environmental groups have raised concerns about potential harm to drinking water supplies. While ADM assures there’s no risk to public health, this incident poses a setback for carbon capture initiatives. The EPA previously found ADM in violation of federal safe drinking water laws.

⛽ Oil Prices Spike Amid Middle East Tensions

Oil prices surged on Thursday as the US considers supporting an Israeli attack on Iranian oil facilities. WTI crude rose over 5%, closing above $73 per barrel, marking the largest one-day gain in nearly a year. A potential strike on Iranian oil could lead to prices rising by an additional $28 per barrel and increase gasoline prices by about 67 cents. Current US gasoline prices have been lower due to weak demand and slower growth in the US and Chinese economies.

⚓ Dockworkers' Strike Temporarily Resolved

The US dockworkers' strike has reached a temporary resolution, with a tentative agreement in place that extends the current contract until January 15. Workers will see a 62% wage increase over the new six-year contract. Negotiations will continue on other issues, including automation. It’s expected that the cargo bottleneck caused by the strike will be cleared in about 12 days.

🌧️ USDA Drought Monitor Update

The latest USDA drought monitor shows improvements in drought conditions across parts of the Corn Belt due to rainfall from Hurricane Helene. States like Kentucky, Indiana, Illinois, and Missouri benefited, while Wisconsin, Michigan, and Minnesota saw worsening conditions. Currently, drought conditions affect:

Corn: 27%

Soybeans: 26%

Winter Wheat: 44%

Spring Wheat: 22%

Cattle: 31%

📊 Strong Corn Export Sales

US new crop corn export sales were impressive last week, with net sales hitting 1.7 million metric tons (66 million bushels), the highest volume since November. Mexico was the largest buyer. Net soybean sales also remained solid at 1.4 million metric tons (53 million bushels), while net wheat sales exceeded expectations at 443,700 metric tons (16 million bushels), with Japan being the largest buyer.

💰 Record High for Money-Market Funds

US money-market funds have reached a record high, with about $38.7 billion added during the week ending October 2. Total assets in these funds have risen to $6.46 trillion. This surge follows a third-quarter increase of $321 billion, significantly higher than the previous quarter’s $63 billion. This influx of investment continues even as the Federal Reserve begins to cut interest rates.

Stay tuned for more updates as the market continues to evolve! 🌱📈