Soybeans Decline After EPA Proposal Sinks Soyoil -- Daily Grain Highlights
By Kirk Maltais
--Soybeans for January delivery fell 2.7%, to $14.29 3/4 a
bushel on the Chicago Board of Trade on Thursday, following soyoil
futures lower in response to a new renewable fuel blending proposal
from the EPA making limited changes.
--Wheat for March delivery fell 1.6%, to $7.83 a bushel.
--Corn for March delivery fell 1% to $6.60 1/2 a bushel.
Sudden Impact: Confirmation by the EPA of its new renewable fuel
blending proposed targets had some clean-energy advocates up in
arms. "EPA's overdue set proposal significantly undercounts
existing biomass-based diesel production and fails to provide
growth for investments the industry has already made in additional
capacity, including for sustainable aviation fuel," the Clean Fuels
Alliance America said in a statement following the EPA's release of
the new proposed volumes. For renewable fuels, the EPA has a volume
target of 20.82 billion gallons in 2023, up less than 1% from 2022.
This sparked a limit-down decline in soyoil futures - falling 6.3%,
or 4.5 cents per pound to 67.38 cents per pound, which in turn
Trailing Behind: Ho-hum export sales from the USDA - in which
new sales of row crops generally fell on the low-end of trader
estimates - was among additional factors weighing on CBOT grain
futures. "[There's] lackluster demand and funds continuing to exit
corn and add to short positions in wheat," Daniel Hueber of the
Hueber Report told the WSJ.
Soaking Wet: Anticipation for wetter weather in Central
Argentina and Brazil over the next 6-10 days looks to be a
consistent source of pressure for grain futures going forward, said
AgResource in a note. However, it's still early to predict how
South American crops will fare. "Choppiness continues until the
South American yield potential is better known," said the firm in
Record Income: Total U.S. farm income will surge to a record
$160 billion this year amid higher prices for a broad swath of
agricultural commodities from soybeans to milk, according to a new
USDA forecast. The agency expects farmers' earnings to jump 14%
from 2021, hitting the highest level ever, or the highest since
1973 in inflation-adjusted dollars. Cash receipts for corn,
soybeans and wheat and other crops are projected to climb 19% while
receipts for animals and animal products are projected to rise 31%
from last year. Farmers' production expenses are meanwhile expected
to increase 19% to $70 billion, the USDA said.
-The CFTC will release its weekly commitment of traders report
at 3:30 p.m. ET Friday.
-The USDA will release its weekly grains export inspections
report at 11 a.m. ET Monday.
--The EIA will release its weekly ethanol production and stocks
report at 10:30 a.m. ET Wednesday.
Jesse Newman contributed to this article.
Write to Kirk Maltais at firstname.lastname@example.org
(END) Dow Jones Newswires
December 01, 2022 15:45 ET (20:45 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.