Soybean futures surged higher on Friday after the US Environmental Protection Agency proposed new biofuel blending requirements that exceeded market expectations. Wheat also posted strong gains, with corn higher as well.
The EPA released its Renewable Volume Obligation (RVO) announcement this morning, proposing a 5.61-billion gallon limit for biomass-based diesel, starting in 2026 (5.86 billion for 2027), which was well above the rumoured totals from a couple weeks ago. The EPA is also looking to cut RIN credits to half for imported feedstocks.
The EPA proposed total biofuel blending volumes at 24.02 billion gallons in 2026 and 24.46 billion gallons in 2027, versus requirements of 22.33 billion gallons in 2025. Soybean oil futures jumped the daily limit on the news, with that strength spilling over to support soybeans. Soyoil is a key biofuel feedstock. July beans jumped 27 ½ cents to $10.69 ¾, and November was up 27 ½ cents at $10.54 ¾.
Corn was also supported by the EPA announcement, with hefty gains in crude oil helping to boost prices as well, amid rising geopolitical risks. Crude moved higher in response to Israel’s military strikes Friday on Iran. July corn was up 6 cents to $4.44 ½, and December was 2 ½ cents higher at $4.43.
Wheat followed both corn and soybeans higher, with reports also pointing to bargain buying as a supportive factor. July Chicago was up 17 ¼ cents at $5.43 ¾, July Kansas City closed 18 cents higher at $5.40 ¾, and July Minneapolis climbed 13 ½ cents to $6.34 ¼.
