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US Biofuels Update: Seasonal Selling Pushes Soybean, Soybean Oil Futures Lower

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Biofuels feedstock futures closed lower on Tuesday, with the seasonal sell-off continuing, and bearish traders keep a grip on the markets.

The Chicago Board of Trade July soybean futures contract closed 1.31% lower at $11.65 per bushel, while the CBOT July soybean oil futures contract settled 0.86% lower at 78.41 cents per pound.

The Nymex July ethanol futures contract settled 0.74% lower on Monday at $2 per gallon.

Rhett Montgomery, a DTN analyst, said this is the time of the year when outside investors lighten up on soybean and corn positions.

Bearish traders kept their grip on the market on Tuesday, seeing the favorable early growing conditions and decent crop ratings from the US Department of Agriculture on Monday as reason enough to bail out of long positions and bet on prices grinding lower through the summer months, Montgomery said.

"Outside market influence has gone largely ignored through the week thus far, with President Trump stating that talks with Iran are ongoing despite reports to the contrary on Monday," he added.

With the significant rise in crush premiums through 2026 amid strong domestic soybean oil demand for biofuel production and strong meal demand for feed, traders will likely be looking for another revision higher to the USDA's forecast in the June World Agricultural Supply and Demand Estimates next week, Montgomery noted.

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