A Reuters report circulating on Friday discussed Biden relaxing rules on blending Ethanol/ bio fuel this would effectively reduce demand for corn and Soybean oil. The background was that a few fuel plants in the US are still not able to blend and risk being shutdown with huge job losses in local areas. This spooked the markets and led to a general sell off across the board. In a year of the G7 highlighting climate change as a top priority supporting an oil industry that can't blend biofuel would seem pretty ludicrous.
Overnight the sell off in the states has continued with the discussion switching to rain coming into the wheat producing states. Before then there are very hot temperatures and a crop condition report so this will need to be weighed up on how this downward trend continues. Also will the rain come?
China has said they will be importing less soy and less corn for the coming season...is this true or is it a game, certainly the aim of controlling inflation is working, deliberate or not.
EU markets are down this morning following the sell off in the States, volume is thin and farmers may well not sell into this market.