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Livestock producers: Extend soymeal coverage... Soymeal futures are trading below the $300.00 value level, despite surging soyoil and soybean prices. If those markets extend today’s strong gains, soymeal is likely to follow. We advise livestock producers to cover half of your soymeal needs for August, September and October in the cash market. You already have all of your soymeal needs for the remainder of June and all of July covered in the cash market.
Your Pro Farmer newsletter is now available... Markets were thrown into a frenzy on Friday as EPA proposed biofuels mandates for 2026 and 2027 above expected levels, especially for biomass-based diesel. Geopolitical tensions also heightened after Israel attacked Iran. USDA’s June Crop Production and Supply & Demand Reports failed to spark much market reaction as there weren’t any major changes aside from the cotton balance sheets. The U.S. and China reached a deal last week to keep the trade truce intact and remove Beijing’s export restrictions on rare earths. The U.S. is still pursuing deals with India, Japan, South Korea and the EU. Meanwhile, President Trump acknowledged his stepped-up deportation drive is fueling deep concern among farmers, with the administration promising to look at every available tool to address the farm worker situation. We cover all of these items and much more in this week’s newsletter, which you can access here.
EPA proposes record RFS levels for 2026, 2027... EPA proposed requiring refiners to blend 24.02 billion gallons of biofuels into the fuel supply in 2026 and 24.46 billion gallons in 2027. The corn-based ethanol mandate would remain at 15 billion gallons for both years. The biomass-based diesel (BBD) mandate would jump to 7.12 billion RINs in 2026 and 7.50 billion RINs in 2027.
Note: EPA is proposing expressing BBD in RINs instead of gallons. EPA projects BBD RINs at 1.27 per gallon for 2026 and 1.28 for 2027. This change is to better align with the way other renewable fuel categories are measured under the RFS program. Most RFS categories — including cellulosic biofuel, advanced biofuel, and total renewable fuel — are already measured in RINs, which are based on ethanol-equivalent gallons, whereas BBD has historically been measured in actual gallons.
There would be reduced credits generated for imported renewable fuel and foreign feedstocks.
Renewable electricity (e-RINs) would no longer qualify.
EPA’s proposal will undergo a public comment period and could be revised before finalization. Industry participants are also awaiting decisions on outstanding small refinery exemption requests, which could impact the overall implementation of the RFS program. EPA will hold a virtual public hearing on July 8, for the proposed rule. An additional session will be held on July 9, if necessary, to accommodate the number of testifiers that sign-up to testify.
This proposal marks a significant step in the Trump administration’s efforts to bolster the domestic biofuel industry, support U.S. agriculture and advance clean energy goals — issues of ongoing interest to those following energy and agricultural policy.
Click here to view the full proposal.
Iran retaliates against Israel... Iran’s retaliation is underway, with the country’s state-run news site saying Tehran launched hundreds of ballistic missiles towards Israel. The Israel Defense Forces said “all of Israel” is under fire, although it was unclear what exactly was being targeted.
USDA raises cash cattle, hog price forecasts... USDA raised its 2025 price forecasts for cash cattle and hogsgiven recent strength in both markets. USDA’s 2025 average cash cattle price jumped $7.00 from last month to a record $221.51. The strength is expected to carry into 2026, with the average cash price now forecast at $229.00, up $6.00 from last month.
The cash hog price outlook for this year was raised $1.75 to $67.40. USDA kept its projection for the average cash hog price in 2026 at $64.00.
China allows import of eligible pork, poultry products from 106 U.S. plants... China has approved 106 new U.S. pork and poultry plants to export eligible products produced on or after June 12, Chinese Customs said. The newly approved facilities include 23 pork plants and 83 poultry plants.
The approvals come after China and U.S. agreed on a framework deal to get their trade truce reached in Geneva talks last month back on track.
Many U.S. beef plant registrations remain listed as “expired” after losing eligibility to export to China in March.
WaPo: No immigration changes underway for farm workers... There are no policy changes under way to exempt farm, hotel and other leisure workers from President Donald Trump’s immigration crackdown, the Washington Post reported on Friday, a day after the U.S. president vowed to issue an order for such workers. Trump’s comments on Thursday were aimed at soothing industry leaders, but there will be no changes to current deportations, according to the report, which cited three people with knowledge of the administration’s immigration policies.
U.S. farm industry groups have long sought to be exempted from mass deportations, which could upend an industry and food supply chain dependent on immigrants.
Consumer sentiment improves for first time this year... U.S. consumer sentiment improved for the first time in six months in June, according to the University of Michigan Surveys of Consumers. The Consumer Sentiment Index jumped to 60.5 this month from a final reading of 52.2 in May but was still 11.3% below year-ago. The Current Economic Conditions Index increased 8.1%, while the Index of Consumer Expectations surged 21.9%. Both remained below year-ago levels.
Surveys of Consumers Director Joanne Hsu said, “Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed. However, consumers still perceive wide-ranging downside risks to the economy. Their views of business conditions, personal finances, buying conditions for big ticket items, labor markets, and stock markets all remain well below six months ago. Despite this month’s notable improvement, consumers remain guarded and concerned about the trajectory of the economy.
Year-ahead inflation expectations plunged from 6.6% last month to 5.1%. Long-run inflation expectations fell for the second straight month, stepping down from 4.2% in May to 4.1%. Both readings were the lowest in three months.
Trump signals possible intervention if Fed delays rate cuts... President Donald Trump renewed his criticism of the Federal Reserve for not moving quickly enough to cut interest rates, calling Chair Jerome Powell a “numbskull.” Trump suggested he may have to “force something” if the central bank continues to delay action, raising fresh concerns about possible White House interference with the Fed. His comments followed a softer-than-expected May producer prices, adding to market speculation over the Fed’s next move.
Bunge receives China’s approval for acquisition of Viterra... Bunge has received regulatory approval from China for its acquisition of Viterra and expects to close the $34 billion deal “on or around July 2,” the company said in a statement. The deal, first announced in 2023, will create a global grain and oilseed trading and processing giant with a scale closer to that of major rivals Archer-Daniels-Midland and Cargill.
The China approval was the last regulatory hurdle Bunge needed to clear to finalize the deal, after it had already secured approvals from others.
China pledges stronger measures to stabilize property market... China’s State Council, led by Premier Li Qiang, has announced a new push to stabilize the struggling property sector by stimulating housing demand, optimizing supply and ramping up financial and fiscal support. In a statement broadcast by China Central Television, officials pledged to promote construction of “quality housing” as part of broader urban renewal plans, offering targeted land and policy support to steady the market.
The council also signaled plans to expand policies first piloted in Shanghai’s free-trade zone to more regions, aiming to further open China’s economy. The new measures come as home prices have dropped at a faster pace amid ongoing tariff tensions.
Separately, authorities committed to strengthening drug procurement policy oversight and boosting pharmaceutical innovation and quality standards.