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U.S. water row puts Mexican president in opposition sights By Reuters

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© Reuters. FILE PHOTO: Delivery of an investigation report marking the 6th anniversary of the disappearance of the 43 students of the Ayotzinapa Teacher Training College, in Mexico City

By Dave Graham (NYSE:)

MEXICO CITY (Reuters) – Mexican President Andres Manuel Lopez Obrador’s desire to placate the United States in a dispute over water has given the beleaguered opposition a flag to rally around as it tries to loosen his grip on the national agenda.

A leftist energy nationalist who has nurtured friendly ties with his American counterpart Donald Trump, Lopez Obrador says he does not want Mexico to become an issue in the United States ahead of November’s U.S. presidential election.

He accuses the opposition-run border state of Chihuahua of jeopardizing a 1944 U.S.-Mexico accord, saying its government has schemed with farmers to block access to a dam to hold up delivery of water due to the United States.

That is untrue, says Chihuahua governor Javier Corral, who has reaped political benefits from standing up to Lopez Obrador. Corral argues Lopez Obrador wants to make him assume the political cost of handing over the water, a federal responsibility that farmers hit by drought are resisting.

The dispute is a window into how Lopez Obrador’s rivals are using local issues to chip away at his domination of the political landscape, much as the 66-year-old once did during his long road to the presidency, which he captured in 2018.

“Resistance to the president is going to come from the provinces. Right now, there’s a spark catching in Chihuahua,” said Roy Campos, head of polling firm Consulta Mitofsky. “Almost taking a leaf out of (Lopez Obrador’s) book on how to do it.”

The dispute has sharpened Corral’s national profile, and last week Lopez Obrador took the unusual step of announcing he would publicly shun him on a weekend visit to Chihuahua.

Facing pressure from their own farmers, the U.S. State Department and the Texas state government have pressed Mexico to honor the deal, under which Mexico must still provide over 250 million cubic meters of water by Oct. 24.

Lopez Obrador has suggested achieving it may be hard to meet unless Chihuahua provides more water. Corral denies this, saying Chihuahua is already delivering more than it did in the last 1 1/2 decades, and that the government has plenty of other options.

“There won’t be a conflict between Mexico and the United States over fulfilling the accord,” Corral said in an interview. “Mexico will be able to comply in good time.”

Some 35 million cubic meters of water would come from Chihuahua in the coming days and the remainder could be covered from Mexico’s international dams, said Corral, a member of the center-right National Action Party (PAN).

Mexico’s Foreign Minister Marcelo Ebrard on Tuesday told the U.S. State Department the deal will be honored.

Lopez Obrador claims Corral has picked a fight over water to score political points ahead of state elections in June 2021. Corral denies this, and nine other opposition governors came out in support of Chihuahua last month.

Chihuahua elects a new governor next year, and if Corral can help the PAN secure the state for another term in defiance of Lopez Obrador, he could become a prime candidate to challenge for the presidency in 2024, said Campos at Mitofsky.

Corral’s popularity had been in the doldrums last year. But as he fought the farmers’ corner and criticized Lopez Obrador for his response to the coronavirus pandemic, it crept up.

By August, his approval rating was 45%, double what it was a year earlier, according to Mitofsky.

Ironically, Lopez Obrador is no stranger to intervening in water disputes. In March, he engineered a referendum to cancel a billion-dollar U.S.-built brewery in the border city of Mexicali on the grounds it threatened local water supply.

REBELS

A journalist by trade, Corral has a reputation as a rebel within the PAN and has even drawn comparisons to Lopez Obrador, who made his name by staging protests against the government in the 1990s and 2000s.

The 54-year-old has parried Lopez Obrador’s broadsides with relish, saying the president is not used to having critics push back. At the same time, he argues that Mexico is sliding towards an increasingly authoritarian, one-man rule.

Both men are trenchant critics of political corruption and Corral praised Lopez Obrador for hiking the minimum wage and adopting social policies to alleviate chronic inequality.

But too much of government is dedicated to distracting from the economy’s slide into recession last year and Mexico’s coronavirus death toll, the fourth-highest worldwide, he said.

“He’s a master of making people forget about the pandemic and the economy,” said Corral, pointing to Lopez Obrador’s raffling of the presidential jet he inherited, and his bid to have a public vote in 2021 on putting ex-presidents on trial.

Corral, who left open the possibility of a presidential tilt in 2024, would not be facing Lopez Obrador: the law currently restricts incumbents to a single six-year term, and the president has said he will not change that.

Corral said he believed Lopez Obrador – but only so far.

“What I think,” he said, “is that he wants to carry on influencing and taking decisions for years after his term ends.”





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Commodities

U.S. EPA considering E15 labeling changes at gas pumps: sources By Reuters

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© Reuters. A sign advertising E15, a gasoline with 15 percent of ethanol, is seen at a gas station in Clive

By Stephanie Kelly

NEW YORK (Reuters) – The U.S. Environmental Protection Agency is considering changes to labels for gasoline containing higher blends of ethanol, or E15, in an effort to appease the biofuel industry’s concerns that current labels discourage use of the fuel, according to four sources familiar with the matter.

Expanding the market for E15 has long been a policy goal for farmers and producers of ethanol, a corn-based product, but concerns that some older vehicles don’t run well on the product have been a headwind. Current federal E15 labels warn of possible engine damage.

The Trump administration, meanwhile, has been trying to shore up support in the Farm Belt ahead of the election through favorable announcements for biofuel advocates.

An announcement for a proposal on the labeling changes could come soon, two of the sources said. None of the sources could say exactly how the administration might alter the labeling.

EPA and the White House did not immediately comment.

President Donald Trump in mid-September said in a tweet he would allow states to permit fuel retailers to use their current pumps to sell E15.

Under U.S. law, refiners must blend billions of gallons of biofuels into their fuel pool, or buy credits from those that do. Refiners that prove the requirements harm them financially can get waivers from the obligations.

So-called small refinery exemptions, or SREs, have been a lightning rod of controversy between the Corn and Oil lobbies. Biofuel advocates say the exemptions hurt demand for their product, while the oil industry refutes that and says the waivers helps small refiners stay afloat.

The Trump administration in September sided with farmers in the ongoing debate when it rejected scores of requests from refiners for waivers that would have retroactively spared them from their obligation.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Gold Rock-Solid Just Above $1,900 as Dollar Holds, Dow Plunges By Investing.com

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© Reuters.

By Barani Krishnan

Investing.com — A meltdown in stocks a week before the U.S. election and amid alarming new Covid-19 cases sent investors scurrying to safe havens on Monday, solidifying gold’s hold at just above $1,900 an ounce.

While the gain — just $5 on the day for gold futures — was nothing to shout about, it was remarkable for one reason: it came despite a rally in the dollar, which typically would have sent the yellow metal the other way.

It was the second time over the past two weeks that the pair moved the same way, the last being on Oct. 16, when both were down about 0.2% on the day. While it’s too early to suggest that the inverse correlation trade between the dollar and gold is over, the breakdown was certainly something to muse over

“Gold prices are hanging in there despite a strong dollar as investors flee to safe-havens over anxiety over the coronavirus crisis (and) growing expectations for a ‘blue wave’,” said Ed Moya at OANDA in New York, referring to the win expected for “blue” or Democratic party candidate Joe Biden versus red or Republican party president Donald Trump.

settled at $1,905.70, up 50 cents, or 0.03%, as the  plunged almost 3%.

, which reflects real-time trades in bullion, was up $1.99, or 0.1%, at $1,903.55 by 3:00 PM ET (19:00 GMT).

The , which pits the greenback against six major currencies, was up 0.3% at 93.04.

Back in March, when risk aversion for the year was at its heights right after the global outbreak of the coronavirus, gold and the dollar surged at the same time.

The dollar then sank and gold continued its climb almost relentlessly, gaining more than $500 or 30% to hit record highs of almost $2,090 on Comex in early August.

At that point, gold tumbled as investors turned back to the dollar, which became the haven of choice due to its standing as a reserve currency. Gold hit 11-week lows of around $1,851 by late September before digging its heels into the low $1,900 support last week.

“From what we know, people are being drawn to gold now for different reasons now,” said Phillip Streible, chief market strategist at Blueline Futures in Chicago.

“The possibility of additional stimulus is certainly one; we all know another relief plan is happening, it’s just a matter of when. Another is that people are still reliving the after the election in 2016 when the Dow swung up 1,500 points overnight. So there’s this theory that gold could continue to dive with all the uncertainty we have over the present election before snapping back. Gold could benefit over this week and it has had low volatility anyway.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Have Wheat Prices Topped Out ? – Growing Your Money

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Have Wheat Prices Topped Out ?

Wheat Futures—Wheat futures in the December contract  is currently trading lower by 10 cents at 6.22 a bushel or 1.62% this Monday afternoon in Chicago as many commodity sectors are lower today due to the fact that the Coronavirus is making new headlines once again as the Dow Jones Industrial Average is down nearly 900 points.

Wheat prices are trading far above their 20 and 100 day moving average as the trend remains to the upside, however for the bullish momentum to continue prices have to break the October 20th high of 6.38 which happened in last week’s trade.

I have been recommending a bullish position over the last month or so from around the 5.40 level and if you took that trade continue to place the stop loss under the 2 week low on a hard basis only standing at 5.87 as an exit strategy, however the chart structure will start to improve on a daily basis later this week as the monetary risk will be reduced substantially.

At the present time I also have bullish recommendations in soybeans and soybean meal which continue to hit contact highs today as the entire sector has entered into a long-term bullish secular trend in my opinion so stay long as the volatility will remain extremely high. 

TREND: HIGHER

CHART STRUCTURE: IMPROVING

VOLATILITY: HIGH

 

 

 

If you are looking to contact Michael Seery (CTA—COMMODITY TRADING ADVISOR) at 1-630-408-3325 I will be more than happy to help you with your trading or visit www.seeryfutures.com

TWITTER—@seeryfutures

 Email: mseery@seeryfutures.com
If you’re looking to open a Trading Account click on this link www.admis.com

There is a substantial risk of loss in futures and futures options. Furthermore, Seery Futures is not responsible for the accuracy of the information contained on linked sites. Trading futures and options is Not appropriate for every investor.

 

  

 



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