Grain markets are trying to find some support after getting gut punched Friday afternoon. What happened? In short, a news story broke about the EPA recommending that the U.S. LOWER biofuel blending mandates below 2020 levels. Now, there’s plenty that needs to happen before that recommendation becomes reality. And we could see support come back into the markets as we get over the sticker shock of the report. However, we need to remember that we’ve been in a demand led rally since late December 2020. If demand starts coming into question, regardless of crop size, our markets are going to react, and we witnessed them do just that on Friday.
Although the damage may already have been done, we did have some decent rainfall totals across the corn belt this weekend, especially in the NW plains and the problem spots in Iowa. Current 6-10-day maps look promising for rain chances as well. Hopefully, this moisture finishes out the bean crop and gives us a little more test weight on the corn. Although this weather pattern isn’t exactly friendly to futures prices, cash corn and beans are still at profitable levels. If nothing else, hopefully we grow a crop to take advantage of these prices, even though we’re off the highs.
Corn 1-2 cents firmer
Beans 13 cents firmer