Tidbits
The European Commission has proposed a delay of its landmark law Deforestation-Free Products Regulation (DFPR). You may recall that ADM was offering a 15 or 20¢ premium for soybeans with a certificate that the beans were not grown on land cleared of trees within the past few years. That was because ADM wanted to sell soybean meal to Europe in 2025 and, without the DFPR certificate, no commodity would be allowed to enter the EU in 2025.
Due to the massive backlash of the over-reach of the EU’s environmental program, the EU has put forward a draft amendment to postpone for a year the DFPR rules that certainly would curb the importation of coffee, cocoa, soy, and beef.
This weekend very well may be the biggest harvest weekend for soybeans and more corn is coming to the market every week. Friday afternoon pre-hedging pressure and profit taking on long positions may provide an excellent opportunity to liquidate corn and beans short positions or to get long the futures or call options to offset cash sales.