Strong gains in soybean oil propelled soybean futures higher on Tuesday, with corn also rising. Wheat futures were mixed.
The gains in soybean oil were attributed to new federal guidance on the 45Z biofuel tax credit, which is expected to provide more market certainty for biodiesel and renewable diesel producers. The guidance was generally applauded by US biofuel and producer groups, although some details remain lacking. March soybeans gained 5 ½ cents to $10.65 ¾, and new-crop November added 4 cents to $10.79 ¼.
Corn got a lift from strong ethanol-related demand. US corn used for ethanol production in December amounted to 488.26 million bu, a new record high for the month and more than 5% above last year. Gains in crude oil were supportive as well. March corn added 2 ¾ cents to $4.28 ½, and December was up 2 cents at $4.56 ¾.
A weaker US dollar helped to underpin wheat, although heavy global supplies remained a negative market factor. March Chicago wheat was up a penny at $5.28 ¾, and March Kansas City slipped a ½ cent to $5.34 ¾. March Hard Red Spring climbed 4 cents to $5.69, and March Minneapolis eased 3 ¼ cents to $5.68 ½.
