Wheat producers: Extend 2025-crop sales, 2026-crop sales... The uptrend in wheat futures has stalled out and prices are in a precarious position as bulls face fundamental headwinds. Both the U.S. and world balance sheets are seen rising with ample production and ending stocks. We advise all wheat producers to sell another 20% of 2025-crop to get to 50% sold in the cash market. We also advise selling another 10% of expected 2026-crop production for harvest delivery next year, to get to 20% forward sold.
Check our advice monitor at ProFarmer.com for updates to our marketing plan.
The Trump administration is weighing a delay of one to two years in implementing cuts to incentives designed to encourage biofuel imports, Reuters reported Wednesday.
Such a move would frustrate farmers and biofuel companies but please refiners who argue that the cuts would result in tighter fuel supplies and higher prices, the report noted.
At issue is a proposal for the Environmental Protection Agency to cut the value of renewable fuel credits for imported biofuels. It was initially pitched as part of President Donald Trump’s “America First” energy agenda and was meant to take effect on Jan. 1. The report said the EPA is now considering a plan that would delay implementation until 2027 or 2028.
Divided Fed
Minutes of the Federal Reserve’s Oct. 29-30 policy meeting released Wednesday afternoon signaled a desire to continue moving interest rates lower, but sharp divisions over the prospect of a December cut. Participants “expressed strongly differing views about what policy decision would most likely be appropriate at the Committee’s December meeting,” according to the written summary of the meeting.
Expectations for a December cut have fallen sharply since Fed Chair Jerome Powell, at the conclusion of the October meeting, warned that another reduction by year-end was not a foregone conclusion.
Fed-funds futures traders are now pricing in a roughly one-in-three probability of a quarter-point cut next month, down from 50% on Monday and roughly 63% a week ago, according to the CME FedWatch Tool.
Notable closes
News reports around U.S.-led talks to end the Russia-Ukraine war appeared to weigh on wheat futures Wednesday.
December SRW fell 9 3/4 cents to $5.36 3/4, near the daily low after hitting a nearly two-week high early on. December HRW fell 10 3/4 cents to $5.15 1/2, while December spring wheat futures fell 1 1/2 cents to $5.81 1/4.