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.

HIGHLIGHTS

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 pressured soybeans.

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.

INSIGHTS

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 its note.

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.

AHEAD:

-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 kirk.maltais@wsj.com

(END) Dow Jones Newswires

December 01, 2022 15:45 ET (20:45 GMT)