Tidbits, Fuel & Economy, Soybean Puts, Drought Monitor, Russian Wheat, Export Sales 6/5/26
- Wright team
- 1 day ago
- 4 min read
Tidbits
Flash Sale: Yesterday, the USDA announced the sale of 115,000 mts of new crop corn to Colombia.
Biofuel: The American Fuel & Petrochemical Manufacturers (AFPM) filed a lawsuit Friday in the D.C. Circuit court challenging the 2026-2027 Renewable Fuel Standard (RFS) volumes finalized by the EPA in March. The AFPM claims EPA’s “Set 2 rule” is the largest and most expensive RFS iteration in history and is the single most expensive regulation of President Trump’s second term. AFPM President and CEO Chet Thompson issued the following statement on the filing:
“The cost of complying with the RFS recently hit a new all-time high, exceeding 35¢ per gallon for the first time. This is the inevitable consequence of EPA finalizing an unlawful, impracticable regulation, which AFPM is formally challenging on behalf of our members — the refineries that supply gasoline and diesel fuel to the United States market — and consumers of these fuels around the country.”
This lawsuit will likely take 4 to 10 years to resolve if it goes to court. It is probably another delay in getting a 45Z ruling for biofuels subsidies while providing another hit to the corn and soybean market.
Economy: Researchers estimate that the current roughly 33% oil price shock under the Fed's methodology tied to the Iran war would add about 1.5 percentage points to inflation over the following year. In the 1970s, a comparable shock would have pushed inflation up by roughly 2.2 percentage points.
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