By Kirk Maltais
--Soybeans for March delivery rose 1.1% to $10.65 a bushel on the Chicago Board of Trade Wednesday, in anticipation of new regulations coming from the EPA to solidify demand for soybean oil for use in biofuel.
--Corn for March delivery fell 0.5% to $4.22 a bushel.
--Wheat for March delivery fell 0.4% to $5.08 3/4 a bushel.
HIGHLIGHTS
Fueling the Fire: Soybean oil futures jumped by nearly 3% in Wednesday's trading, which helped lift underlying soybean futures. Behind the uptick was hopes that the EPA will soon release its final regulations around biofuels, including the status of small refinery exemptions. "There's a cautious optimism that those final regulations will be positive for demand for feedstocks going into the production of biomass diesel, including soybean oil," says Arlan Suderman of StoneX in a note.
Back to the Table: Indications that U.S. officials have met with their Chinese counterparts while attending the World Economic Forum in Davos, Switzerland boosted soybeans in early trade. Treasury Secretary Scott Bessent is reported to have met with Chinese Vice Premier He Lifeng in Davos, and U.S. Trade Representative Jamieson Greer floated the possibility of the two sides meeting again before a scheduled sit down between President Trump and Chinese President Xi in April.
Cooling Off: Financial markets across the board breathed a sigh of relief in the U.S.-Greenland situation Wednesday, after President Trump ruled out a military takeover in remarks at Davos while signaling a willingness to broker a deal through negotiations. "While it is hard to judge how the rather quixotic dispute over Greenland's sovereignty and military defense will evolve, Trump's remarks could be interpreted as a step towards de-escalation," said Jonas Goltermann of Capital Economics in a note. After the close of trading, Trump posted on Truth Social that "the framework" of a deal over Greenland has been reached with NATO.
INSIGHT
Getting on the Docket: Rules allowing year-round sales of E15 gasoline nationwide have found their way into the bipartisan budget bill being negotiated ahead of the next shutdown deadline of Jan. 30. The House bill now contains an amendment from Rep. Zach Nunn (R-Iowa) to authorize year-round E15 sales, which are currently not allowed due to smog concerns, said Jim Wiesemeyer of Pro Farmer. Corn growers have been pushing for this change in regulations, in hopes of the ethanol industry consuming more of the record-huge 2025 corn crop.
Money Pit: U.S. tariffs on agricultural products like seeds and pesticides brought in nearly $1 billion in revenue from February to October 2025, said North Dakota State University in a note. More than half of that came from tariffs on farm machinery, while another $273 million in tariff revenue came in from agricultural chemicals, $110 million from fertilizers, and $44 million from seeds. In its research, NDSU says that "domestic importers and farmers bore the tariff burden substantially." High input costs have been a factor keeping farmer profitability underwater, with crop budgets expected to be largely negative for corn and soybeans this spring.
AHEAD
--The EIA will release its Weekly Petroleum Status Update report at 10:30 a.m. ET Thursday.
--The USDA will release its monthly Livestock Slaughter report at 3 p.m. ET Thursday.
--The USDA will release its weekly export sales report at 8:30 a.m. ET Friday.
--The USDA will release its monthly Cattle on Feed report at 3 p.m. ET Friday.
--The USDA will release its monthly Cold Storage report at 3 p.m. ET Friday.
--The CFTC will release its weekly Commitment of Traders report at 3:30 p.m. ET Friday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
01-21-26 1515ET
