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US Biofuels Update: Crop Weather Pressures Soybean Futures, Soybean Oil Prices Rise

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Biofuels feedstock futures closed mixed on Monday, as the soybean market dropped while the soybean oil prices recovered from a three-day skid.

The Chicago Board of Trade July soybean futures contract closed 0.62 lower at $11.15 3/4 per bushel, while CBOT July soybean oil futures contract settled 2.09% higher at 71.15 cents per pound.

The Nymex July ethanol futures contract settled 1.36% higher on Thursday at $1.86 per gallon.

Rhett Montgomery, a DTN analyst, said favorable crop weather has its thumb on soybean prices.

"The soybean market was pressured by the same bearish weather aspects weighing on corn but also supported by a strong recovery session for soybean oil to begin the week," Montgomery said in a daily note.

He added that after prices traded higher for three straight sessions on rumors, which were later confirmed, of Chinese purchases, "July soybean futures have again turned lower over the past two sessions."

In the week ending June 18, a total of 8.9 million bushels of soybeans were inspected for export, well below the previous week's 19.6 mb and a marketing year low, the US Department of Agriculture data show.

Inspections to date total 1.35 billion bushels and are down 19% from the same point a year ago, with USDA expecting a 20% year-over-year drop in soybean exports to 1.51 bb.

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