Friday turned into a split-screen day for U.S. farm markets. On one side, grain traders watched soybeans and bean oil lose momentum as disappointment spread after the EPA’s latest biofuel policy update. On the other, cattle and hog futures kept charging higher, giving livestock producers something much brighter to watch before the weekend.
DTN analysts said markets looked notably weaker by the close in grains, with soybeans taking the biggest hit and corn also moving lower. At the same time, live cattle, feeder cattle, and lean hogs all posted gains as traders leaned into supportive fundamentals and a steadier cash tone. That kind of divergence does not happen every day. And it says a lot about what is driving agriculture right now.
Grain markets lost steam as soybeans led the downside
By midday and into the close, May corn was lower, May soybeans were down sharply, and Chicago wheat also slipped, while Kansas City and Minneapolis wheat held up better. DTN said soybeans and bean oil were the main weak spots as the market backed away from bullish bets that had built ahead of the EPA decision.
The key issue was not that the policy was entirely bearish. Traders appeared to see the renewable fuel volumes as supportive overall, but the allowance of full RINs for foreign feedstock and soybean oil disappointed some in the market. In practical terms, that meant the soybean complex lost part of the premium it had been carrying. Fast.
Livestock futures found fresh strength before the weekend
Livestock told a very different story. By late morning, June live cattle were up more than $3, May feeder cattle had jumped nearly $7, and June lean hogs were also trading higher. DTN said the complex was finally seeing the kind of fundamental support traders had been waiting for.
Cash cattle trade had not fully developed yet, but analysts expected more business later in the day, especially in the South. Hogs also drew support from Thursday’s Quarterly Hogs and Pigs report, helping the sector start and stay firm. For producers watching both sides of the commodity board, it was a reminder that feed costs, policy signals, and meat demand do not always move in sync.
The main market report has been published by DTN.