Tidbits, Crude Oil Demand, China Soybeans, Crop Conditions, ENSO, Export Inspections 9/9/25
- Wright team
- 16 hours ago
- 4 min read
Tidbits
The U.S. House Agriculture Committee plans to pass a five-year reauthorization of USDA’s grain inspection program, updating the United States Grain Standards Reauthorization Act (expiring Sept. 30) to promote new technology, including a requirement for USDA to prioritize adopting improved grain grading tech and an exemption of equipment and tech costs from the 30% cap on administrative expenses; NGFA's Mike Seyfert calls it a “must-pass” for the grain value chain, while the Senate Agriculture Committee has not yet taken up a reauthorization bill, though it held a July hearing. The National Grain and Feed Association is also seeking waivers from the Federal Grain Inspection Service during disasters with mutual buyer-seller agreement. Some states want a baseline federal funding level for inspection programs outside user fees as fee revenue falls with shipping volumes.
Crude oil: Frederic Lasserre, head of research and analysis at commodity trading giant Gunvor, reported yesterday that China will continue amassing crude oil in strategic and commercial reserves well into 2026. China began boosting its crude oil imports in March-April and has kept elevated import levels since then. The key driver has been crude stockpiling, not a major rebound in demand, according to analysts.
Bloomberg reported Monday the physical indicators have not reflected the year-long bearish forecasts. Asian refiners raised their bids for October cargoes from the Middle East last week, with premiums climbing despite the planned OPEC+ supply increase. In the U.S., EIA inventory data show gasoline and distillate inventories remain below the five-year average, keeping margins firm for refiners. Traders told Bloomberg that these conditions suggest prompt demand is holding up, even as forward curves soften. OPEC ministers will revisit these dynamics at the late-September OPEC+ monitoring committee, where compliance data and updated demand figures will be reviewed.
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