Suddenly yesterday morning, the market became very concerned about a lack of rain on Canada’s canola crop and Europe’s rapeseed crop. That supposedly was the reason beans traded 42¢ higher yesterday midday. Soyoil traded sharply higher Tuesday and closed above its 100-day moving average.
Yesterday morning, the consumer price index for May was reported to be up 0.1% and up 4% from a year ago, the lowest annual gain in about two years. This morning at 7:30 Central, the producer price index, the measure of inflation at the wholesale level, will be reported. It will probably be a negative number, meaning May was deflationary. Markets have priced-in a steady interest rate announcement (no increase) by the Federal Reserve this afternoon.
A year ago, the EPA was ordered by a Federal Court to announce biofuel blending mandates for 2023 by today. At midday yesterday, the EPA was granted a one-week extension on that order.