Corn and soybean prices exploded on Tuesday on rumors of a new deal to change regulations surrounding biofuels.
The plan was submitted to the White House by the Renewable Fuels Association and Carl Icahn, a billionaire investor and Trump adviser. The deal would curb foreign imports and boost demand for domestically-produced biofuels like soy-based biodiesel and corn-based ethanol.
At the Chicago Board of Trade, the biggest gainer was soybean oil, which is used to produce biodiesel; that market gained nearly 6% on the news, trading near 34.5 cents per pound.
The early rumors were that the plan was going to be implemented soon, but a White House denial of immediate action cut the legs out from the rally; by Friday, the markets had given up almost half of their gain, with May corn and soybean worth $3.80 and $10.32 per bushel, respectively.