Chicago | Reuters – Chicago grain and soybean futures regained ground on Tuesday as a selloff in commodity markets subsided and after the U.S. Treasury Department released updated guidance on biofuel tax credits, analysts said.
The most-active soybean contract on the Chicago Board of Trade Sv1 settled 5-1/2 cents higher at $10.65-3/4 a bushel, recovering from a three-session fall. CBOT wheat Wv1 closed 1 cent higher at $5.28-3/4 per bushel, and CBOT corn Cv1 closed 2-3/4 cents higher at $4.28-1/2.
Market players are continuing to parse through the Treasury’s updated guidance on the 45Z Clean Fuel Production tax credit, which – among other changes – clarified that only feedstocks from the U.S., Mexico and Canada qualify for the tax credit and extended the credit to 2029.
Read Also
U.S. livestock: Cattle futures higher on tightening cattle supply
Chicago | Reuters – CME live and feeder cattle futures bounced for the second day on Tuesday on continued support…
“A lot of the support is from the release of 45Z guidance from the Treasury this morning. It gave some clarity and additionality for biofuel producers,” said Dan Basse, president of AgResource Company.
Biofuels are a major source of demand for soyoil, traders said. The long-awaited guidance also helped push corn futures higher as the grain is used to produce ethanol, another major biofuel.
Grains had been dragged lower on Monday by a selloff in commodities, fuelled by a de-escalation of tensions between the U.S. and Iran and a rising dollar. But a steadying of broader commodities markets, particularly crude oil, on Tuesday provided support for grains and soybeans.
Ample global supply continued to hang over the market.
In South America, Brazil is in the early stages of harvesting what is forecast to be a record soybean crop.
Brokerage StoneX and consultancy Celeres raised their forecasts for Brazil’s 2025/26 soybean crop on Monday, citing higher yields than previously expected.
In wheat, concerns were easing about cold weather damage to crops in the U.S. and the Black Sea region, though wheat futures gained some spillover support from corn and soy futures.
-Additional reporting by Gus Trompiz in Paris and Daphne Zhang and Lewis Jackson in Beijing
