Grains and Soybean Oil Fall Following White House Statements

US corn futures fell just over six percent during the last two trading sessions with traders moving in to capture gains as the forecast for improved weather is coinciding with a key growth phase for corn.  Soybeans are down nearly five percent over the same two-day trading period and soybean oil, the primary feedstock used in biodiesel production, is down over six percent in the past two trading sessions and seven percet since June 8.

The market may also be experiencing some erosion in price support for corn and soybeans after the White House announced it could step in to provide relief to refiners facing high compliance prices in meeting their renewable fuel obligations. Reducing biofuel blending mandates, one of the tools at the EPA’s disposal, would lower renewable blending obligations under the Renewable Fuel Standard.  Doing so would reduce the amount of corn and…