The Chicago soybean complex eased on Wednesday, diverging from higher crude oil prices, amid cautious trading ahead of the US Department of Agriculture's supply and demand outlook report.
The October soybean oil contract on the Chicago Board of Trade retreated 0.13% to 70.13 cents per pound in early trade.
The November soybean contract eased 0.15% to $13.14 per bushel, although prices remained above the $13-mark on strong Chinese demand.
China's purchases are likely to reach about half of its 25 million metric ton pledge ahead of the Sep. 24 summit between US President Donald Trump and Chinese leader Xi Jinping, Mark Soderberg of ADM Investor Services said.
Cheaper US soybeans compared with Brazilian cargoes encouraged more Chinese buying, according to Mark Schultz of Northstar Commodity, as cited by AgWeb.
China's soybean imports in August reportedly stood at 12.1 mmt, down 1% from a year earlier, but up 6% from July levels. In the first eight months of the year, the country's imports rose 1% year over year to 74.1 mmt.
Soybean prices also remained supported amid yield uncertainties due to hot and dry weather. The USDA reported that 58% of the US soybean crop was rated good-to-excellent as of Sep. 6, unchanged from a week earlier but lower than the previous year's 64%.
Yields in key states Ohio, Indiana, Illinois, and Iowa are expected to decline from last year's levels, supporting prices going forward, Schultz reportedly said.
Ethanol prices also weakened ahead of USDA's report, with the October contract on the NYMEX slipping by a further 1.20% to about $2.06 per gallon on Tuesday.
In Asia, Malaysian palm oil futures dipped on Wednesday ahead of the release of monthly industry data, which market participants expect to show a drop in exports and a buildup in inventories.
The Bursa Malaysia Derivatives' October crude palm oil contract extended losses for a second straight session and fell 0.40% to 4,787 Malaysian ringgit ($1,183.58) per metric ton. The November contract eased 0.20% to 4,966 ringgit/mt.
The Malaysian Palm Oil Board will release August industry data on Sep. 10.
Cargo surveyors reportedly estimated Malaysia's shipments in August to have dropped 6.5% to 14.9% from a month earlier.
Meanwhile, stockpiles have likely risen to their highest level since January due to weak demand from top importer India despite upcoming festivities, according to market participants and analysts surveyed by Bloomberg.
Demand from key buyer China was also under pressure due to high domestic inventories and the deep inversion of the soybean oil-palm oil spread, price reporting agency MySteel said.
In the EU, palm oil imports for the current 2026/27 marketing year, which began in July, reportedly dropped 18% year over year to 490,000 metric tons.
Going forward, Indonesia's B50 roll-out, which may tighten exportable supplies once fully implemented in October, is expected to support prices.
The higher biodiesel blend has cut the country's diesel imports by half and resulted in foreign exchange savings, Antara reported, citing the Ministry of Energy and Mineral Resources.
Weather-driven supply risks are also expected to boost prices, particularly with rising uncertainties over Indonesian output following forest fires in several areas.