Soybeans took a hit today, with July contracts dropping 26½ cents. The pressure came largely from a sharp selloff in the soybean oil market, as headlines swirled around proposed changes to biofuel policy.
Reports say the EPA has sent a new biodiesel blending proposal to the White House—suggesting a target of 4.65 billion gallons for 2026. That’s well below the 5.25 billion gallons that biofuel producers and oil refiners had previously agreed to in a joint proposal.
Traders are now questioning demand for soybean oil going forward, triggering the sharp selloff across the board in the soy complex.
Cattle futures dropped sharply at the open but rebounded before renewed selling set in. Live cattle are down $1.50 to $2.65, and feeders are $3 to nearly $5 lower. Hog futures are the bright spot, with strong wholesale pork prices pushing June and July contracts to multi-week highs.
In the cash market, trade is developing in the Plains. Nebraska saw sales at $229 live and $358 dressed—both higher than last week. Kansas and Texas prices are mostly steady to slightly lower.
Choice beef cutout values are firmer, but packer margins remain deep in the red, estimated at nearly $177 per head.
Shawn Hackett with Hackett Financial Advisors talks the days action in the Market Wrap Up…
