Good morning!
Grains pull back overnight... Corn, soybeans and wheat pulled back from recent gains during the overnight session, pressured by outside markets. As of 6:30 a.m. CT, corn futures are trading 3 cents lower, soybeans are 5 to 7 cents lower and wheat futures are 3 to 6 cents lower. The U.S. dollar index is around 190 points higher and front-month crude oil futures are about $1.20 lower.
WSJ previews coming MAHA report... Health and Human Services Secretary Robert F. Kennedy Jr. is preparing to release his long-awaited “Make America Healthy Again” (MAHA) report, a sweeping health policy document that calls for rethinking American nutrition guidelines, vaccine trials and the influence of industry lobbyists — while stopping short of a full regulatory assault on pesticides, the Wall Street Journal (WSJ) reported in an exclusive item. WSJ said the report questions the health impact of glyphosate (the key ingredient in Bayer’s Roundup) and atrazine, two widely used herbicides, especially on children. However, it does not classify them as unsafe. WSJ said the draft calls for a new government health assessment of glyphosate in 2026, a move that has already stirred resistance from agricultural groups. The MAHA report strongly critiques ultra-processed foods and the federal dietary guidelines that, it argues, fail to address their health consequences, according to the WSJ account. The report is expected to say ultra-processed foods have resulted in children consuming too many highly processed grains, sugars and fat, as well as too many calories overall. Kennedy has said he expects the upcoming revision of federal dietary advice to emphasize whole foods and warn against packaged, processed items. WSJ noted that insiders cautioned its content may still change. Sources say there will be a press briefing for reporters at 8 a.m. CT and the report will be released at 11 a.m. CT.
House Republicans pass reconciliation bill... The legislation includes $3.8 trillion in tax cuts and cuts in growth of Medicaid and SNAP coupled with the phase out of some clean energy tax credits from the Inflation Reduction Act and increases for reference prices in Title I of the farm bill. The bill now heads to the Senate, where significant revisions — especially to tax provisions — are expected. Senate Republicans are signaling plans to overhaul key sections, even as a potential debt ceiling crisis looms in August. If altered, the House would need to pass the revised version with its razor-thin three-seat GOP majority — and against a louder Democratic campaign.
EPA to finalize 2026 biofuel mandate ‘very soon’... EPA Administrator Lee Zeldin told senators Wednesday that a proposal setting 2026 Renewable Fuel Standard (RFS) volumes — and likely volumes for additional years — is nearing release. The proposed rule is under review by the White House Office of Management and Budget, the final step before publication. Zeldin said EPA is targeting a “much, much faster” timeline than summer or fall. Stakeholders have meetings scheduled with the Trump administration through June 9. However, EPA could fast-track the process — as it did last year under President Biden by canceling meetings to finalize the rule more quickly. Zeldin also highlighted efforts to address a longstanding backlog of small refinery exemption (SRE) petitions, which he said were previously ignored, noting the agency wants to “get caught up as quickly as we can.”
Weekly Export Sales Report out this morning... For the week ended May 15, traders expect:
| 2024-25 expectations (in MT) | 2024-25 last week | 2025-26 expectations (in MT) | 2025-26 last week | |
| Corn | 700,000-1,600,000 | 1,677,215 | 50,000-500,000 | 508,928 |
| Wheat | (200,000)-100,000 | 58,627 | 300,000-700,000 | 746,155 |
| Soybeans | 100,000-300,000 | 282,427 | 90,000-400,000 | 490,261 |
| Soymeal | 100,000-400,000 | 286,665 | 0-50,000 | 32,687 |
| Soyoil | 0-22,000 | 13,593 | 0-10,000 | 479 |
NGFA urges CFTC to reject 24/7 ag futures trading... The National Grain and Feed Association (NGFA) is urging the Commodity Futures Trading Commission (CFTC) to reject proposals to expand agricultural futures trading to a 24/7 schedule. In a letter to the agency, the group warned that continuous trading could fuel unnecessary volatility and heighten the risk of market manipulation, especially when cash markets are closed.
OPEC+ discusses making another large output hike in July... OPEC+ members are discussing whether to agree on another large production increase at their meeting on June 1, Bloomberg reported. An output hike of 411,000 barrels a day (bpd) for July is among the options under discussion, although no final agreement has yet been reached.
EU sets strictest deforestation checks on four nations... The European Commission unveiled its final classification under the EU’s landmark anti-deforestation law, assigning the “high-risk” label — and the toughest import scrutiny — to just four countries: Belarus, Myanmar, North Korea and Russia. Surprisingly, major deforestation-linked exporters like Brazil and Indonesia are placed in the “standard-risk” category, meaning they will face lighter compliance checks for key commodities entering the European Union. The new law covers soy, beef, palm oil, wood, cocoa and coffee, along with derivatives like leather, chocolate and furniture. All companies must prove origin and provide verifiable proof that products weren’t sourced from land deforested after 2020. Violations may trigger fines up to 4% of EU turnover per country. The decision reflects a balance between trade diplomacy and environmental enforcement, with the EU favoring diplomatic caution toward major economies while maintaining regulatory pressure on outliers.
Brazil’s meat lobby group requests more cold storage at ports amid HPAI outbreak... Brazil meat lobby ABPA, which represents global food processors including JBS SA and BRF SA, requested the government’s permission to expand use of cold storage capacity at ports as a way to mitigate the impact of the current trade disruptions due to the country’s outbreak of highly pathogenic avian influenza (HPAI). As we previously reported, exporters are bracing for cargo rejections, with ABPA saying it is up to the exporting companies to deal with returned cargoes or finding a new destination for them.
Some higher cash cattle trade surfaces... After some light trade at steady/weaker prices in the Southern Plains earlier this week dressed prices in Nebraska averaged about $2.00 higher than last week on Wednesday. The stronger tone in the northern market may encourage feedlots in the Southern Plains to hold out for steady/firmer prices on remaining sales.
Cash hog index continues steady climb... The CME lean hog index is up another 49 cents to $92.34 as of May 20, the seventh straight daily. During that span, the index has risen $2.41 – an average of 34.4 cents per day. While the cash market is steadily rising, traders remain hesitant to build too much premium into June lean hog futures. As of Wednesday’s close, the lead contract held a $7.185 premium to today’s index quote.
Overnight demand news... Exporters reported no tenders or sales.
Today’s reports
- 7:30 a.m. Weekly Export Sales — FAS
- 2:00 p.m. Sugar: World Markets and Trade — FAS
- 2:00 p.m. Slaughter Weekly — NASS
- 2:00 p.m. Livestock Slaughter — NASS