EPA Proposes Restoring Biofuel Volumes Exempted from Refinery Requirements

EPA Administrator Lee Zeldin announced Tuesday a proposal to restore renewable fuel blending requirements affected by additional small refinery exemptions, a move intended to protect demand for American corn and soybeans. The EPA said exemptions granted for 2025 exceeded earlier projections by 770 million renewable identification numbers, or RINs, which represent renewable fuel volumes. Under the proposal, EPA would reallocate 100% of those additional exempted volumes through one of two approaches. The first would divide the volumes equally between the 2026 and 2027 compliance years. The second would assign the entire amount to 2027. The agency said the changes would preserve renewable fuel targets and strengthen markets for agricultural commodities used in ethanol and biodiesel production. EPA is accepting public comments through Dec. 4.  RFA President and CEO Geoff Cooper thanked EPA for the move, adding, “While we believe most of the exemptions were unjustified, EPA’s reallocation plan—if finalized as proposed—will help offset the demand loss for ethanol producers and farmers.”

China Trade Uncertainty Adds Pressure to U.S. Soybean Markets

U.S. soybean prices remain under pressure as farmers contend with larger crop estimates and uncertainty surrounding agricultural trade with China. Successful Farming reports November soybean futures declined in overnight trading Tuesday following USDA's October supply-and-demand report. The Agriculture Department increased its soybean production forecast to 4.562 billion bushels, up 27 million bushels from September. The projected national yield rose to 53.1 bushels per acre. USDA also increased projected soybean exports by 10 million bushels, while leaving its domestic crushing forecast unchanged. Despite the stronger export outlook, traders remain sensitive to developments in U.S.-China trade relations. China is a major destination for American soybeans, making purchase commitments and tariff policies important influences on farm prices. USDA projects soybean ending stocks at 315 million bushels and an average farm price of $12 per bushel. Farmers are watching export sales closely as the fall harvest continues.

Heavy Rain Threatens Harvest Progress in Kansas and Missouri

Heavy rain and potentially severe thunderstorms could disrupt fall harvest operations across parts of Kansas and Missouri this week. The National Weather Service issued flood watches extending from central Kansas into western Missouri as a storm system moved across the region Tuesday. Forecasters said portions of northern and eastern Kansas faced a 60% to 90% chance of thunderstorms capable of producing damaging winds, large hail and torrential rainfall. Some storms could generate wind gusts reaching 70 mph and hail measuring 2 inches in diameter. Additional rainfall is expected Wednesday night into Thursday, with portions of east-central Kansas potentially receiving more than 3 inches. The storms could delay corn and soybean harvesting, increase soil moisture and complicate field access for machinery. The threat follows recent wet weather that has already affected harvesting in portions of the Midwest. Farmers are monitoring field conditions and forecasts as they work to complete fall harvest operations.

Ethanol Could Open New Market for American Corn Producers

Ethanol could find a growing market in international shipping as the maritime industry searches for lower-emission alternatives to traditional petroleum fuels. Successful Farming reports a study by the Maersk Mc-Kinney Moller Center for Zero-Carbon Shipping identified ethanol as a potentially viable fuel for commercial vessels. The research examined ethanol's compatibility with existing fuel infrastructure and its potential to reduce greenhouse gas emissions. The study found ethanol could complement methanol-based marine fuel systems, although additional technical development and infrastructure changes would be necessary. Blending ethanol with marine gas oil also showed promise as a way to reduce emissions. For American agriculture, the development could eventually create another source of demand for corn, the primary feedstock used in domestic ethanol production. However, widespread adoption would depend on fuel economics, shipping regulations and investments in compatible engines and storage systems. Researchers say ethanol deserves further consideration as shipping companies evaluate alternative fuels.

Avian Influenza Confirmed in Washington State Dairy Cattle

The Washington State Department of Agriculture has confirmed the state's first cases of highly pathogenic avian influenza in dairy cattle. The virus was detected at two Yakima (YAK-ih-mah) County dairy farms. The Washington State Department of Agriculture said both farms are under quarantine, with strict biosecurity measures in place, and veterinarians are treating sick cows. State officials say pasteurized milk remains safe, and no supply shortages in the state are expected. However, health officials warn against consuming raw milk or raw dairy products. Dr. Amber Itle (EYE-tel), Washington State Veterinarian, urges livestock owners to watch for symptoms of H5N1, including reduced milk production, fever, and loss of appetite, and report illness promptly to a veterinarian. Most affected cattle recover with supportive care, typically within six weeks. WSDA says this is the first case of HPAI following more that 7,000 surveillance tests over the past two years.

Wednesday Watch List

Markets

On Wednesday, the Bureau of Labor Statistics will start things off with the September Consumer Price Index report at 7:30 a.m. CDT, giving traders a look into recent inflation in the U.S. At 2 p.m. CDT, USDA's Economic Research Service will release their monthly commodity outlooks for feed grains, oil crops, wheat, as well as others.

Weather

A cold front stretches from the Texas Panhandle into the Midwest where scattered showers and thunderstorms will be ongoing throughout the day Wednesday. A system in the Southwest will move into the Plains, spreading more precipitation throughout the region as well.

Ag Lending Continues Growing in Q2

Agricultural lending at U.S. commercial banks continued to grow during the second quarter of 2026, while farm loan performance remained relatively stable. The Federal Deposit Insurance Corporation shows total outstanding agricultural loans reached 206.27 billion dollars, up 2.1 percent from the first quarter and 3.8 percent from a year earlier. Farm real estate loans totaled 122.26 billion dollars, increasing 4.5 percent year over year. Non-real estate farm loans, which help finance production, equipment, and livestock, reached 84 billion dollars, up 2.8 percent from a year ago. At banks specializing in agricultural lending, delinquency rates declined from the first quarter but remained close to year-earlier levels. Those banks also reported wider net interest margins during the quarter. Higher yields on earning assets supported the quarterly improvement, while lower funding costs accounted for much of the increase over the year. The figures point to continued growth in farm credit, with loan quality showing little change from last year.