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US Biofuels Update: Reported Peace Agreement Weakened Soybean Futures

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Biofuels feedstock futures closed mixed on Friday, with the soybeans weaker on a reported peace agreement between the US and Iran.

The Chicago Board of Trade July soybean futures contract closed 0.65% lower at $11.86 per bushel, while the CBOT July soybean oil futures contract settled 1.33% higher at 77.72 cents per pound.

The Nymex July ethanol futures contract settled 1.50% higher on Thursday at $2.03 per gallon.

Reports indicate that a memorandum of understanding has been reached with Iran for a 60-day extension of the ceasefire and for nuclear negotiations to continue, but it is awaiting presidential approval.

Todd Hultman, a DTN analyst, said Thursday's news of a possible peace deal with Iran eased some concerns about future energy supplies, but so far, demand for biofuels remains strong and profitable for producers.

"July soybeans closed down on Friday, showing signs of a possible bearish turn in May, while new-crop soybeans hold firm, encouraged by White House promises of new-crop sales to China. November futures ended down 4 cents at $11.90 and were up 17 cents on the month," Hultman said.

"July soybean oil closed up at its highest July close in over three years," he said.

The analyst added that early Friday, the US Department of Agriculture said 11 million bushels of soybeans were sold for export last week, bringing the total sales and shipments to 1.46 billion bushels, down 18% from this time a year ago.

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