By Kirk Maltais
--Soybeans for January delivery fell 0.9% to $12.50 1/4 a bushel, on the Chicago Board of Trade Tuesday, with biofuel blending mandates set to be released by the EPA retroactively cutting blending targets.
--Wheat for March delivery rose 0.3% to $8.08 1/2 a bushel.
--Corn for March delivery rose 0.4% to $5.86 a bushel.
HIGHLIGHTS
Bean Bust: The EPA's expected new mandates applied pressure to soybean futures trading on the CBOT late in the day - as the EPA's reported targets are seen as a cut to the amount of renewable fuel needed by oil refineries going forward. "Beans traded both sides of unchanged, ending lower on an apparent shift of RVO's from the biodiesel category into ethanol, at least as far as market expectations were concerned," said Charlie Sernatinger of ED&F Man Capital. Soyoil futures finished down 1.3% today.
Not All Bad: While soybeans slipped on the EPA reports, corn futures turned higher with the figures for 2022 being a supportive surprise for traders. While the EPA will likely reduce targets for renewable fuel blending, it also plans to reduce the amount of small-refinery waivers it allows. "The 2022 mandate is supportive with the EPA suggesting that it will reject a significant number of small refinery waivers," said AgResource.
Face Off: Grain traders kept their eyes trained on news coming out of talks between President Biden and Russian President Putin today, which are the result of Russia gathering thousands of troops at the Ukraine border. For wheat in particular, the implications of the situation turning hot could be immediate - with Russia being a leading source for wheat exports.
INSIGHTS
Applying the Brakes: With Christmas drawing closer, grain traders are slowing down their activity and selling off ahead of the holiday, said Dan Hueber of the Hueber Report. "It is not that we have done anything outlandish, but I continue to believe there is a good possibility that we could see prices work generally lower into Christmas and the end of the year," said Mr. Hueber. Shorter-term, traders appear to be getting their positions ready ahead of Thursday's WASDE report from the USDA - but for the remaining weeks of the year, a holiday ramp-down is on traders' minds.
Rising Supplies: Inventories of ethanol in the U.S. could be in for another jump in tomorrow's report from the EIA, according to analysts surveyed by Dow Jones this week. Analysts forecast that ethanol supplies are going to rise anywhere between 20.33 million barrels to 20.9 million barrels - up from 20.3 million barrels reported last week by the EIA. Meanwhile, daily production is also expected to rise, to as high as 1.06 million barrels per day, which is up from 1.04 million barrels per day reported last week.
AHEAD
--The EIA will release its weekly ethanol production and stocks report at 10:30 a.m. ET Wednesday.
--Hormel Foods Corp. will release its fourth-quarter earnings at 6:30 a.m. ET Thursday.
--The USDA will release its weekly export sales report at 8:30 a.m. ET Thursday.
--The USDA will release its monthly WASDE report at noon eastern time Thursday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
12-07-21 1549ET
