After new contract highs, grain futures tumble on EPA rumors.
Grain futures had seen wheat score new contract highs above 850 on the winter wheat contracts, corn rechallenged early week highs along with soybeans challenging yesterday's highs just to see sharp reversals lower after 9:30 AM. Rumors are circulating after the start of the day session rally, that the long-awaited biofuel mandates for 2020-2021 and 2022 will be released in the coming days. It's the rumors of this potential EPA imminent biofuel announcement that pulled grain values sharply off morning highs. It would be anticipated that 2020 and 2021 biofuel mandates should have limited demand impact, it's the mandate for 2022 that will be important. 2020 and 2021 biofuel mandates will impact blenders in the values of RINs.