Rumors Really Move Corn and Beans Today

It was quite a day in the corn and bean markets. When I got to the studio about 4:10 this morning, both corn and beans were trading a little firmer. I was relieved that they were holding because they have been under some pressure recently. Talking with Gordy on the air after the open at 8:30, both corn and beans were moving a lot higher. Gordy did not know why other than maybe a little too wet in Brazil? There was also some talk that China bought a couple cargoes of beans from the United States because they were not available from Brazil yet.

Talking with Gordy at 11:15, we knew why corn and beans were trading sharply higher. There was a report that the President Trump administration was going to change the Renewable Fuels Standard and allow gasoline blends of 15 percent ethanol that could be sold all year long. There would also be a change on the blending obligation from the refiners to the wholesalers. In addition, there would be a curb on imports of biodiesel and an extension on the $1 per gallon biodiesel tax credit.

Late in the noon hour, there was another report that the Trump administration denied any change to the renewable Fuel Standard was in the works. So, corn and beans went back down. But, corn still closed 5-6 cents higher and beans were 12-14 cents higher. Maybe traders are thinking President Trump might say something favorable about renewable fuels like ethanol or biodiesel in tonight's State of the Union address?