Biofuels
Jamie Gieseke with Paradigm Futures says the charts are bullish for grain markets, especially for corn.
The agency’s approved Small Refinery Exemptions totaling 1.76 billion RINs, but offset that by proposing to reallocate 770 million RINs for 2026 and 2027.
Data shows soybean crush and renewable diesel output are hitting all-time highs, driven by strong domestic biofuel policy, while new U.S. tariffs on Brazilian tallow add fresh demand in the biofuel feedstock market.
In late June, the agency revised its technical guidelines for biofuel feedstocks related to the 45z tax credit.
ASA says it fully supports year-round E15 ethanol but says social media backlash stems from confusion over SREs in House bill language as the measure heads to a tougher Senate fight.
The U.S. House approved legislation to allow year-round sales of E15 gasoline nationwide, aiming to lower fuel prices while facing pushback over potential refinery costs and the impact on the national debt.
Fresh analysis from FAPRI finds passage of year-round E15 would bring limited near-term gains to corn prices, while SRE changes would put pressure on farm income and negatively impact soybeans.
After passing the House 224-200, the farm bill is headed to the Senate, where SNAP funding could be another problematic topic.