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The market showed more subdued reverberations to yesterday's report. The market expressed its opinion of the exaggerated demand estimates by the USDA, by taking the corn market lower despite “tight” balance tables. It seems that the trade is not convinced that the USDA's projections are realistic. Soybeans also had some second guessing to start the session, but made it up plus some to close.
What rescued the soybean market from the demand wariness was bean oil which is back in the news as it is reported that 45Z is expected to see an extension. Legislators know what the program is called, but they don’t know what it is. 45Z is currently just a label without details. Biofuel producers have long been waiting for clarity on the 45Z and other tax credits, and this move could represent a first step in the right direction. The market is also waiting for the EPA to announce 2026 renewable volume obligations (RVOs) (for ethanol).
The weather forecast for the rest of this week around the Midwest is ideal to finish up planting.
Wheat did not seem to have any headlines today, but maybe found a low?? Time will tell.
Funds were thought to have been mixed with corn and beans sellers and wheat a buyer.
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