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Soybeans suffered at the hands of soyoil today as the U.S. Environmental Protection Agency sent its Renewable Volume Obligations (RVO) recommendations to the White House. The industry had previously requested that the biomass diesel production mandate be raised to 5.25 billion gallons, up from 3.35 billion gallons currently. Traders reacted negatively to rumors that the EPA recommended something closer to 4.6 billion gallons, but all of this is currently just unconfirmed speculation. EPA head Zeldin further added fuel to the fire in saying that regardless of the level, the mandate would be decided on over the course of coming months, signaling guidance shouldn't be expected any time soon. The lack of clarity has caused producers to significantly dial back production operations already in the current calendar year. July soybean oil closed down the 3.0 cents/lb trading limit at 49.32. By the close, the synthetic bid in bean oil was 70 points below the trade limit, which indicates there is a surplus of selling interest in the product still.
The Wheat Quality Council tour found Kansas HRWW yields averaging 53.0 bushels per acre following their three-day crop tour this week, up from the 44.3 bpa five-year average number and the highest since 2021. Kansas wheat production was pegged at 338.5 million bushels. The USDA this month pegged KS wheat yields at 50.0 bpa with output at 345 mbu.
NOPA soybean crush came in at 190.2 million bushels, well above the average 184.6 mbu guess and on the high end of the 180.0-191.0 mbu trade estimate range; it was down from 194.6 mbu in March but above 169.4 mbu last April, and a mile above any previous April.
Corn and wheat export sales were shown above expectations today, while soybeans were within estimates. Marketing year to date corn export sales exceed the seasonal pace needed to hit USDA's newly increased export target by 149 million bushels, up from 112 million the previous week. Corn demand remains quite strong. Marketing year to date soybean export sales exceed the seasonal pace needed to hit USDA's newly increased export target by 11 million bushels, up from 9 million bushels the previous week.
Funds were thought to have been mixed today with corn neutral, beans sellers, and wheat a buyer,
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