Railroads reached a tentative agreement with unions, which, if approved by the union members, there will be no strike. Very good news for everyone in the grain market, indeed. The agreement provides rail employees a 24% wage increase during the five-year period between 2020 and 2024, while also paying out an immediate $11,000 per union member upon adoption. U.S. natural gas futures fell 8% on Thursday on the news of the probable settlement.
Crude oil prices were sharply lower yesterday because the Department of Energy said its plan to restock the Strategic Petroleum Reserve (SPR) does not include a price trigger (Biden said Wednesday less than $80) and would not happen in any case until after fiscal year 2023, which ends September 30, 2023.
Germany is considering nationalising three of the country’s largest natural gas companies to avoid a collapse of its domestic energy market.
October Crude oil options expire today. October grain options expire a week from today.