What You Need to Know Before Trading on 10.13.2022 + Futures Trading Levels

WYNTK For Trade Date of Oct. 13th 2022

By Mark O’Brien, Senior Broker

Financials: The Federal Reserve released the minutes of its September meeting and they signaled that the central bank is locked and loaded to continue with more interest rate hikes heading to year’s end. They remained focused on maintaining their restrictive policy steps in their efforts to quell the inflation still stubbornly intertwined in the U.S. economy. The committee acknowledged that inflation had shown “little sign so far of abating,” and that they “needed to move to, and then maintain, a more restrictive policy stance in order to meet the Committee’s legislative mandate to promote maximum employment and price stability.”

On the economic reports schedule for tomorrow: the Bureau of Labor Statistics’ Consumer Price Index Report, which measures the prices paid by consumers for a basket of consumer goods and services.

Softs / Orange Juice: The path of destruction left in Hurricane Ian’s wake didn’t spare Florida’s 6.7 billion dollar citrus industry which reported today that it will see the smallest orange crop in nearly 80 years. The front-month November futures contract traded above $2.00 per pound intraday last Mon. – nearly 50% higher than year-ago prices and stayed near these elevated life-of-contract highs right up into today’s report.

Softs / Cotton: Moving in the opposite direction, Dec. cotton futures recently posted 5-month lows near 82 cents per pound, well off their $1.32/lb. highs of mid-May – a ±$25,000 move for the futures contract. Today’s World Supply & Demand report cited rising U.S. stockpiles and forecast waning global demand to further spur the price decline.

As always, plan your trade and trade your plan. Please contact your broker or Cannon Trading with any questions.