Chicago soybeans eased from six-week highs on Thursday as traders took profits and amid signs of improving weather conditions in the US Midwest, supporting soybean growing conditions.
The August soybean contract on the Chicago Board of Trade dropped 0.46% to $11.88 per bushel in early trade.
Meanwhile, the August soybean oil contract rose for a fifth straight session and firmed by a further 0.45% to 71.17 cents per pound, tracking gains in the global crude oil market.
Soybeans diverged from energy price movements amid improving supply sentiment, as widespread rain showers in the Midwest this week temporarily limit temperatures.
"Overall, this is still a good pattern for developing corn and soybeans in most of the region, though chances for heat should be monitored as corn starts to pollinate and soybeans are blooming," agriculture intelligence provider DTN said.
Prices also rose despite reports from the US Department of Agriculture that China bought 472,000 metric tons of US soybeans for delivery in the current and the next marketing period.
Mark Knight of Farmers Keeper Financial, as cited by Ag Web, said that more purchases will be needed to push prices up, as the market seems to have already priced in the latest export news.
The market is now awaiting the USDA's monthly supply and demand report for guidance, price reporting agency MySteel said, with analysts expecting the 2026/27 soybean production outlook to increase to about 4.46 billion bushels from the previous forecast of 4.44 billion bushels.
In Asia, Malaysian palm oil futures fell on Thursday, diverging from crude oil and soybean oil price trends, amid cautious trading ahead of the release of key June industry data.
The Bursa Malaysia Derivatives' August crude palm oil contract declined 0.35% to 4,556 Malaysian ringgit ($1,116.50) per metric ton. The September contract dipped 0.33% to 4,594 ringgit/mt.
Ahead of the release of the Malaysian Palm Oil Board's monthly data on July 10, a Reuters survey showed June inventories reached a record high for the month due to high production and subdued demand.
Industry estimates also showed month-over-month increases in June output and stocks during the peak production season, MySteel said.
Cargo surveyors, meanwhile, reportedly estimated Malaysian shipments to have grown month over month in June.
Robust exports extended through the first five days of July, with preliminary estimates showing shipments rose between 10.6% and 11.1% from a month earlier, according to Trading Economics.
Competitiveness of exports improved as the local currency eased against the US dollar for a second straight session on Thursday. The Malaysian ringgit has so far weakened 0.16% this week, making cargoes cheaper for international buyers.
Malaysian exports could receive a boost as Indonesia's exportable supplies decrease with the gradual implementation of its higher 50% biodiesel blend mandate beginning July 1.
The Indonesian Palm Oil Association, as cited by Jakarta Globe, said the expanded biofuel policy could reduce crude palm oil exports by 2 million metric tons in H2.
Nonetheless, the government was reportedly optimistic that domestic crude palm oil supplies of around 46 mmt will be sufficient to sustain the biodiesel program, which is projected to raise domestic demand by 5.3 mmt on an annual basis.
Meanwhile, August ethanol prices on the NYMEX rose 0.52% to $1.93 per gallon on Wednesday following bullish weekly data from the US Energy Information Administration.
US weekly ethanol production averaged 1.09 million barrels per day for the week ended July 3, down from the previous week's 1.11 million barrels per day.
Exports grew week over week to 200,000 barrels per day from 126,000 b/d, and domestic stocks decreased to 23.9 million barrels from 24.7 mmbbls.