The Chicago soybean complex retreated on Tuesday as crude oil prices declined and as agricultural reports showed a rapid pace of planting in the US.
The July soybean oil contract on the Chicago Board of Trade ended a six-session rally and slipped 0.54% to 78.66 cents per pound. The corresponding soybean contract dropped 0.30% to $11.77 per bushel after hitting a two-week low earlier in the session.
Soybean planting across 18 US states has reached 87% as of May 31, the agriculture department reported, up versus the previous year's pace of 83% and the five-year average of 80%.
The progress, however, came in lower than market expectations of 89%, according to price reporting agency MySteel.
Agriculture data also showed that 66% of soybeans were in good-to-excellent condition, down slightly from the prior year's 67%.
In terms of exports, data showed a year-over-year jump in soybean inspections to 494,286 metric tons in the week ended May 28, relative to the prior year's 301,459 mt. Current marketing year-to-date volumes, however, remained lower at 35.6 million metric tons, compared with the previous season's 44.7 mmt.
China emerged as the top destination for soybeans inspected during the week, according to the report.
The country's soybean imports for the 2025/26 season are projected at 103.3 mmt, Forbes reported, citing the agriculture ministry. Purchases will likely decline in the 2026/27 season to 95.5 mmt, driven by softening demand for soybean meal used in animal feeds.
"Even though soybean meal currently offers good value for money, the downward price trend has led most buyers to adopt a strategy of purchasing as needed and rolling replenishment," MySteel said.
Weaker Chinese demand could impact US soybean prices, particularly at a time when South American cargoes crowd the market.
On the NYMEX, July ethanol prices also eased 0.74% to $2.00 per gallon on Monday.
Data from the US Energy Information Administration showed that the country's operable ethanol capacity dropped to 18.39 billion gallons per year in March, from 18.44 bgal/y in February and a year earlier.