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US Biofuels Update: Demand Drove Soybean Futures Higher on Friday

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The biofuels feedstock futures closed higher on Friday, with traders citing strong demand as a catalyst for a rally in the soybean complex.

The Chicago Board of Trade November soybean futures contract closed 0.87% higher at $11.92 1/4 per bushel, while the CBOT September soybean oil futures contract settled 0.94% higher at 69.44 cents per pound.

The Nymex September ethanol futures contract settled 0.50% lower on Wednesday at $1.97 per gallon.

Rhett Montgomery, a DTN analyst, said the soybean market was supported by another purchase of US soybeans from China.

"Creating an opposing force is the active weather pattern in much of the primary corn and soybean area," Montgomery said.

He added that rumors from an Asia-based trade group reported that China has already bought 7 million metric tons as of this week. "That would be nearly one-third of the pledged 25 mmt promised by China by year's end," according to the analyst.

He added that another new sale of 5 million bushels or 136,000 mt of US soybeans gave the markets a boost.

On Friday, the US Department of Agriculture announced sales of 136,000 mt of soybeans for delivery to China during the 2026/2027 marketing year.

On the new crop, US soybeans now show a price advantage over Brazil on a freight-on-board basis.

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