Emergence of export demand countered weakening crude oil prices and buoyed major biofuel feedstock futures on Monday.
The July soybean contract on the Chicago Board of Trade rose 0.31% to $11.26 per bushel. The July CBOT soybean oil contract gained 0.60% to 70.11 cents per pound in early trade.
The US Department of Agriculture reported that China bought 132,000 metric tons of soybeans for delivery during the 2026/27 marketing year, with traders reportedly monitoring further big purchases a month after the US-China summit.
The department also said another 120,000 mt of soybeans were sold to unknown destinations during the same marketing period.
Reports of higher exports lifted the soybean complex despite declining energy prices, which pressure biofuel economics.
"In the short term, prices are expected to oscillate between the positive impact of US soybean exports and downward pressure from crude oil, with a likely bias toward range-bound weakness," price reporting agency MySteel said.
Bumper harvests in South America and a rapid pace of US planting, which hinges on favorable weather patterns, are also expected to weigh on prices. The USDA's official planted acreage report will be released on June 30.
In China, Brazilian cargoes are arriving at bulk and crushers are operating at higher run rates, according to MySteel, with soybean oil stocks recently rising 16.6% from year-ago levels to 987,200 mt.
In Asia, Malaysian palm oil also diverged from a weakening crude oil market, as strong exports drove futures higher on Monday.
For a fourth straight session, the Bursa Malaysia Derivatives' July crude palm oil contract rose by a further 0.35% to 4,610 Malaysian ringgit ($1,110.58) per metric ton. The August crude palm oil contract inched up 0.41% to 4,641 ringgit/mt.
Intertek Testing Services, as cited by Trading Economics, reportedly estimated Malaysian shipments for the June 1-20 period to have grown 19.1% from a month earlier. This followed a 14.5% month-over-month drop in May, as per industry data.
From January through May, the country's total palm oil exports have risen 13.8% from year-ago levels, largely due to higher purchases by India, Kenya, and Vietnam, according to the Malaysian Palm Oil Council.
India's imports for June are reportedly expected to exceed 600,000 mt, after totaling 549,000 mt in May.
The competitiveness of Malaysian exports is likely to improve as Indonesia implements its higher biodiesel mandate of 50% in July. This is an increase from the current blending ratio of 40%.
"This may encourage global importers to shift part of their sourcing towards Malaysia for greater supply stability," the MPOC said.
The council expects crude palm oil prices to range between 4,400 ringgit/mt and 4,650 ringgit/mt next month, driven by prospects of tighter supply from expanding biofuel use in Indonesia, as well as due to the developing El Nino weather phenomenon.
"Nevertheless, price gains may be capped by elevated vegetable oil inventories in key importing markets," the MPOC said, noting that stocks in India and China have risen to their highest in 17 months and five months, respectively, due to weak near-term demand.
A weakening energy market has also put gasoil prices at discounts to palm oil in the futures market, reducing the viability of biodiesel, according to MPOC.
Meanwhile, July ethanol prices on the NYMEX firmed 1.36% to $1.86 per gallon on Thursday. The market resumed trading on Monday following a public holiday on Friday.