The Chicago soybean complex rose on Wednesday as strong energy prices provided support and as unfavorable weather patterns raised concerns over crop growing conditions in the US.
The August soybean contract on the Chicago Board of Trade firmed 0.06% to $11.93 per bushel. The August soybean oil contract gained 0.06% to 72.44 cents per pound in early trade.
Parts of the US Midwest will likely experience hot and dry weather through next week, potentially stressing crops.
Despite elevated temperatures, the US Department of Agriculture reported an increase in the portion of crops rated good-to-excellent. As of July 12, 65% of crops achieved this rating, up from the previous week's 64%, surpassing market expectations.
The agency did not report new export sales to China, pressuring a market watching eagerly for Chinese purchases from the US.
China maintained its soybean production outlook for the 2026/27 marketing year at around 17.2 million tons, Fastmarkets reported, citing data from China's Agriculture Outlook Committee.
To supplement local output, China is mainly importing soybeans from Brazil, where cargoes are now offered at parity to US soybeans, agriculture data provider DTN said.
The South American country has reportedly approved a ban on biodiesel imports and rules expanding the voluntary use of biodiesel beyond the mandatory level to help strengthen the biofuel industry.
In Asia, Malaysian palm oil futures were steady to lower on Wednesday, diverging from crude oil and soybean oil prices, as high inventories and weak Indian demand weighed on market sentiment.
The Bursa Malaysia Derivatives' August crude palm oil contract was largely unchanged at 4,530 Malaysian ringgit ($1,110.24) per metric ton. The September contract lost 0.09% to 4,569 ringgit/mt following a two-session rally.
Palm oil purchases by top importer India reportedly plunged to a 14-month low in June and declined 11% month over month, as demand weakened due to a narrowing discount of palm oil to other rival oils.
India primarily imports palm oil from Malaysia and Indonesia.
Supplies to the country are not expected to drop despite Indonesia's higher 50% biodiesel blend mandate, or B50, National Energy Council member Satya Widya Yudha told Ani in an interview.
Yudha reportedly said that Indonesia aims to maintain its cooperation with India, and targets meeting both local and international demand by boosting domestic production.
Indonesia began a phased implementation of B50 on July 1. Analysts expect exportable supplies of palm oil to gradually decline toward year-end as more volumes are absorbed domestically.
In May, the country's exports saw a 25.1% year-over-year drop and a 28.1% month-over-month decline to around 2.0 million metric tons, The Edge Malaysia reported, citing Indonesian palm oil association Gapki.
As exports dropped, stocks reportedly rose 18.9% from a month earlier to 3.0 mmt, despite lower production.
In Malaysia, inventories also grew to their highest level since March at 2.5 mmt in June, according to the Malaysian Palm Oil Board data, as an increase in output offset a rebound in exports.
Iceberg X trader David Ng, as cited by Bloomberg, said persisting high stocks coupled with weak Indian demand are pressuring prices.
In Q3, palm oil's price upside will likely be capped by rising inventory levels, while the market could strengthen in Q4 as output declines and as B50 demand grows, according to TA Research, as cited by The Star.
Meanwhile, August ethanol prices on the NYMEX ended a four-session rally and dropped 2.04% to about $1.93 per gallon on Tuesday, as the market awaited the weekly inventory, exports, and production data.