3 Big Things Today, Sept. 18, 2025

1. Soybean Futures Modestly Lower in Overnight Trading

Soybean futures were lower in overnight trading after the U.S. Environmental Protection Agency kicked the can on blending volumes down the road. 

EPA said in a statement this week that it would propose 100% or 50% reallocation for small refinery exemptions, or SREs, granted from 2023 to 2025. About 140 refineries received exemptions during that timeframe. 

The agency said it would hold a 45-day comment period before making any decisions. 

Some analysts had believed EPA would make a more definitive decision instead of pushing any guidance down the road. Without a policy in place, biodiesel and ethanol producers remain uncertain about the number of blending exemptions that will be reallocated. 

The Renewable Fuels Association said it’s “cautiously optimistic” about the proposal, though it questions whether any SREs were ever justified. 

RFA said it supports full reallocation of the SREs from 2023 to 2025, which would ensure consumption of renewable fuels meet their intended levels. 

Also weighing on prices overnight was favorable weather in parts of the U.S. Midwest where corn and soybean harvests are underway. 

While some precipitation is possible in several states this afternoon into the weekend, mostly dry weather in the Corn Belt will allow farmers to continue to harvest their crops. 

Soybeans for November delivery fell 3 3/4¢ to $10.40 a bushel overnight on the Chicago Board of Trade. Soymeal dropped 90¢ to $284.80 a short ton and soybean oil futures lost 0.31¢ to 51.48¢ a pound. 

Corn futures fell 1/4¢ to $4.26 1/2 a bushel. 

Wheat futures for December delivery rose 2¢ to $5.30 1/4 a bushel. Kansas City futures gained13¢ to $5.17 1/4 a bushel. 

2. Ethanol Output Drops to Lowest in Almost Four Months

Ethanol output plunged to the lowest level in almost four months and inventories declined in the seven days that ended on Sept. 12, the Energy Information Administration said in a weekly report. 

Production dropped to an average of 1.055 million barrels a day, the agency said.

That’s down from 1.105 million barrels the previous week and the lowest level since May 16. 

In the Midwest, by far the biggest producing region, output average 997,000 barrels a day, down from 1.047 million barrels the week prior and the first time production didn’t average a million barrels or more since May 23. 

West Coast production was down by a thousand barrels to an average of 9,000 a day, EIA said. 

That was the entirety of the weekly losses as East Coast output was steady at 12,000 barrels and Gulf Coast production was unchanged at 26,000 barrels per day. 

The Rocky Mountain region was the lone gainer for the week, rising to an average of 11,000 barrels per day from 9,000 a week earlier, the government said. 

Ethanol inventories in the week through Sept. 12 totaled 22.602 million barrels, That’s down from 22.837 million the previous week, EIA said in its report. 

3. Storms Expected in South Dakota, Minnesota

Storms are expected to roll through parts of eastern South Dakota and western Minnesota today and tomorrow, and while no severe weather is expected, saturated soils may lead to ponding in low-lying areas, the National Weather Service said in a report early this morning. 

Localized flooding is possible in slow-draining areas or on low-lying roads, the agency said. 

In eastern Iowa, meanwhile, thunderstorms are forecast this afternoon into the evening.

“Later tonight some storms may try to spread eastward enough to get to the Mississippi River,” NWS said. “There will be additional chances for thunderstorms Friday and on into the weekend. The threat for severe weather is low at this time.”