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US Biofuels Update: Peace Deal Optimism Pushes Soybean Futures Lower

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Biofuels feedstock futures closed lower on Thursday, as markets turned lower by early afternoon amid growing optimism regarding the latest push for an agreement to end the conflict and reopen the Strait of Hormuz to trade.

The Chicago Board of Trade July soybean futures contract closed 0.81% lower at $11.99 per bushel, while the CBOT July soybean oil futures contract settled 1.03% lower at 74.66 cents per pound.

The Nymex June ethanol futures contract settled unchanged on Wednesday at $1.98 per

gallon.

Equity markets have also reversed from early lows on optimism about peace.

Rhett Montgomery, DTN analyst, said weather forecasts pressured the soybean futures market. "The soybean market retreated for a third straight session after Monday's bounce, pressured by a friendly weather outlook over the remainder of May and into early June," Montgomery said.

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