By Kirk Maltais


-- Wheat for July delivery rose 3.1% to $5.42 3/4 a bushel on the Chicago Board of Trade on Friday, leading the way up for grain futures after the EPA released a proposal that was surprisingly more friendly for American vegetable oil producers than anticipated.

-- Soybeans for July delivery rose 2.5% to $10.69 a bushel.

-- Corn for July delivery rose 1.4% to $4.45 a bushel.


HIGHLIGHTS


Surprise Showing: CBOT grain futures surged after the EPA released a proposal for new biofuel blending requirements that are higher than expected by the market, with 5.61 billion gallons expected in 2026 and 5.86 billion gallons expected for 2027.

The release spurred cheers from the renewable energy sector.

"This proposal sends a very positive and powerful signal to U.S. renewable fuel producers and farmers," said Renewable Fuels Association head Geoff Cooper in a release.

Also encouraging for U.S. ag is the insistence of meeting that demand using domestic sources instead of imports.


Following the Leader: The EPA news gave soybean oil futures a boost, bringing them to a limit-up close. The most-active contract is up 6.3%, bringing soyoil back to its highest level in a month of over 50 cents a pound.

The strength in soyoil translated to strength for soybeans.

Indications that the Trump administration seeks to fulfill its increased vegetable oil blending obligations using mostly domestic production also gave soybeans a boost, said Brian Hoops of Midwest Market Solutions.


INSIGHT


Source of Support: The WSJ Dollar Index was higher in the aftermath of Israel's attack on Iranian nuclear sites, although analysts aren't sure if the appreciation of the dollar will continue past Friday.

"The effects of today's strikes may prove short-lived, at least in the absence of further escalation," said Jonas Goltermann of Capital Economics in a note.


Growing Pains: Israel's attack on Iran may impact the availability of fertilizer.

"Iran is the #3 exporter of urea fertilizer in the world at 4.8 million metric tons per year, and the #7 exporter of anhydrous ammonia," said Arlan Suderman of StoneX in a note. "Many other major nitrogen producers lie in the region as well, some of which transport their fertilizer through the Strait of Hormuz."

A disruption to the supply chains in the Middle East could push prices higher globally.

"We probably won't see the market worry about fertilizer as much as crude oil, but it is an important component of this conflict," Suderman said.


Off On the Right Foot: The beginning of the growing season is off to a good start weatherwise.

The USDA said that fields on the Plains are set to receive precipitation over the weekend, which should continue to rejuvenate areas that have been dry and, in some cases, drought stricken.

Rainfall is also expected to come to eastern parts of the Corn Belt.

While increased soil moisture is positive for most farmers, those looking to harvest may have some difficulties.


AHEAD


-- The USDA is scheduled to release its weekly grain export inspections report at 11 a.m. EDT Monday.

-- The USDA is due to release its weekly crop progress report at 4 p.m. EDT Monday.

-- The EIA is scheduled to release its weekly ethanol production and stocks report at 10:30 a.m. EDT Wednesday.

-- The USDA is due to release its monthly livestock slaughter report at 3 p.m. EDT Wednesday.


Write to Kirk Maltais at kirk.maltais@wsj.com


(END) Dow Jones Newswires

06-13-25 1546ET