CBOT Grains Daily Options Report

The June Fed minutes leaned hawkish. A few officials believed there was a case for raising rates in June, but they still supported holding policy steady. The bigger takeaway is that the Fed remains more worried about inflation than the labor market, with officials saying upside risks to price stability remain elevated while downside employment risks have eased. The minutes also showed the committee discussed scenarios where inflation stays too high and additional policy firming could be needed. For markets, this pushes back against the idea of quick rate cuts and is generally supportive of the dollar/rates while potentially pressuring commodities and risk assets.

 

Brazil chicken exports hit a record in the first half of 2026, with shipments reaching 2.936 million tonnes, up 12.9% from last year, while revenue rose 17% to $5.7 billion. June was especially strong, with exports up 40.6% year over year to 482,800 tonnes and revenue up 54.7% to $985.5 million. China remained Brazil’s top buyer, followed by Japan, the UAE, Saudi Arabia, and the EU. Part of the sharp increase reflects an easier comparison after some countries restricted Brazilian poultry in June 2025 due to avian flu, but the broader takeaway is that global demand for Brazilian poultry remains very strong despite Middle East tensions and shipping challenges around Hormuz.

 

JBS is scaling back its 2040 net-zero emissions goal, specifically dropping targets tied to indirect Scope 3 emissions, which make up most of the company’s environmental footprint and include livestock-related emissions across its supply chain. The company will still pursue reductions in emissions it directly controls, targeting a 30% cut in Scope 1 and 2 emissions intensity by 2030 versus 2019 and a 70% reduction by 2050. For the meat sector, the move highlights how difficult it is for large processors to make hard commitments on producer-level and supply-chain emissions, especially when those emissions are harder to measure and control. Near term, this is more of an ESG and regulatory headline than a direct livestock market driver, but it could keep scrutiny on global meatpackers elevated.

 

The European Parliament blocked the European Commission’s proposal to strip soy-based biofuels of their renewable status, which would have phased them out of EU renewable energy targets by 2030. Lawmakers argued the Commission’s methodology was flawed because it treated soy as a high indirect land-use-change risk without properly accounting for the fact that EU-grown soy does not drive deforestation. They also said the proposal conflicted with the EU’s goal of becoming more self-sufficient in protein crops. This is supportive for soy oil and soybean demand, because it removes an immediate policy threat to soy-based biofuels in Europe, but it is not a final win — Parliament asked the Commission to resubmit an updated proposal, so regulatory risk remains.

 

The DOE ethanol report was friendly overall, with total stocks falling 3.1% on the week to 23.928 million barrels, well below the Bloomberg survey average of 24.640 million. The stock draw was led by the Midwest, West Coast and East Coast, while Gulf stocks were the only region to build. Production slipped to 1.093 million barrels per day, down 2.1% from last week and slightly below expectations, but the 4-week average remains near 1.1 million bpd and is still 1.1% above last year, keeping corn-for-ethanol demand steady. Blender inputs were softer at 901,000 bpd, so the report is not aggressively bullish, but the larger-than-expected inventory draw is supportive ethanol and mildly supportive corn.

 

Egg prices have shifted sharply from last year’s inflation pressure point to a deflationary story. Wholesale large shell egg prices have fallen back to about $0.27 per dozen, with USDA describing supplies as moderate to heavy and trading slow. Inventories are rebuilding, total shell egg stocks rose 4% week over week, and large egg inventories increased 6%, showing production is normalizing after the bird flu supply shock. That is negative for egg producers like Cal-Maine, which benefited from extremely high prices, but positive for packaged food companies and breakfast-heavy restaurants because lower egg costs can support margins and ease a key input-cost pressure.

 

Pepsi reports earnings tomorrow

 

Corn

S 1000 u 410 p 5

B 3000 q 450 c 4 7/8 to 5 1/2

B 300 v 435 p 10 1/8 

B 1000 z 460 c vs s v 460 c 4 5/8 db

B 2250 u 410 p vs s 4500 u 380 p 2 ½ to 3 3/8 db

B 1000 u 500 c 2 5/8 vs 434 1/2

S 3500 z 450/420 ps 10 ½ vs 457

S 200 sd q 460 c 9 to 8 1/2

S 1000 q 440 c 7 ½ to 7 3/8 

B 1000 v 480/540 cs 8 ¼ to 9 1/4

S 200 w3 435 straddles 

S 4000 q 410 p 1 1/8

B 1400 u 425 p 9 3/8 vs 437 3/4

B 2000 u 455 c 4

B 1000 u 500 c 2 3/4

B 500 v 480/540 cs 9 1/4

B 100 v 460/490 cs 9 1/2

B 250 zz -15/even cs 3 3/8 db

S 1500 w2 435 p vs b 3000 w2 420 p 3 1/8 to 3 cr

 

On a block

S 1000 z 460 p 24 ¾ vs 459 3/4

B 2000 q 450 c 5 1/4

 

Beans

S 1500 q 1160/1170 cs 7 1/2

B 500 u 1250 c vs s 1000 u 1400 c 10 db vs 1191

B 500 q 1150 p 4 to 4 1/8 

B 1250 qx +10 cso c 2 ¼ to 2 3/4

B 100 qx +5 cso c vs s 200 qx +20 cso c 1 db

S 2000 x 1200 p 49 to 46 1/2

S 750 h 1250/1350 cs 21 1/2

 

Soymeal

S 500 q 310/330 cs 6.00 to 5.00

B 1000 z 350 c 4.75

S 400 z 310 p 13.85 vs 310.2

 

Bean oil

S 2000 u 72 c vs b 1000 z 70 c .260 cr

S 500 q 73 c .520 vs 7025

S 1000 u 72/80/88 call flies .970 vs 6975

S 500 q 73 c .520 vs 70.25

B 1000 q 6250 p .060

B 3000 z 75 c 1.910 to 2.250

S 500 h 62p/78c strangles 3.900 vs 6885

S 450 q 69 p .630

S 2000 q 73 c .635 to .620

B 200 f 70/75 cs vs s 65 p .730 cr

B 200 h 90 c .750 vs 6930

B 100 z 70 c vs s 200 z 80 c 1.490 db

S 1000 v 7750 c .980 to .920

S 100 w2 70 p .350

B 300 n 69/74 cs vs s 61 p .650 cr

 

Wheat

S 500 q 620 c 12 5/8

S100 z 600/630 cs 13 3/4

S 300 u 560 p 4 3/8 vs 610 1/4

 

On a block

B 500 z 700/750 cs 7 1/8 

 

Kc wheat

S 100 u 680 c 14 vs 647

S 500 u 650 c 24 3/8 to 24 1/8

B 100 h 775/800 cs 4

 

Hog

Bought 1200 Oct 100 calls paid .4750 On A Block

Sold 800 Oct 85 straddles @ 7.60

Sold 450 Dec 90 calls @ .750

Bought 400 Oct 90 calls paid 1.90 up to 2.05

Sold 250 Aug 101/107 call spread v. 94 puts @ .775 down to .75

Sold 400 Oct 96 calls @ .850

Sold 600 Aug 96 puts @ .875

Bought 400 July 95 puts paid 1.20 up to 1.25 covered 93.90

Sold 200 Oct 84 Straddle @ 7.475 covered 84.050 On a Block

Sold 200 July 95 calls @ .20 covered 94.50

Bought 2000 Oct 72 puts paid .65 up to .675

Bought 900 Aug 88 puts paid .10

 

Live Cattle

Sold 600 Aug 234 calls @ 4.40 down to 4.30

Bought 250 Oct 228 puts paid 4.65

Sold 300 Aug/Feb 240/230 put spreads Diag. @ 3.125 down to 2.975

Bought 400 Aug 228 puts paid 1.00 up to 1.25

Bought 400 Aug 226 puts paid .725 up to .925

Bought 250 Aug 218 puts paid .175

Bought 100 April 242 calls paid 6.40

Bought 350 Aug 250/240 put spread paid 8.65 up to 8.675

Sold 450 Dec 210/200 put spread @ 1.05 down to .90

Bought 200 Aug 242/238 put spread paid 2.625 up to 2.675

Sold 150 Feb 200/230/240/270 Iron Condor @ 12.80

Sold 1700 Aug 234 calls @ 5.550 down to 4.50

Bought 300 Aug 240 calls paid 2.50

Bought 450 Aug 238 puts paid 3.80

Sold 200 Aug 245/240 put spreads @ 3.775 down to 3.75

Bought 300 Feb 228 puts paid 7.60 up to 7.80

Bought 200 Oct 231/235 call spread paid 2.025

 

Feeder Cattle

Bought 150 Aug 374/366 put spread paid 6.00 up to 6.35

Sold 100 Sept 390/400 call spread @ .65

Sold 100 Sept 350 puts @ 7.80 down to 7.625