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US Biofuels Update: Soybean Complex Falls Amid Easing Middle Eastern Tension, Favorable Crop Weather

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Biofuels feedstock futures closed lower on Wednesday, as soybean futures dropped below $12.00 per bushel.

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.

Dana Mantini, DTN analyst, said corn and soybean futures led markets lower on Wednesday, pressured by a favorable forecast for the next few weeks and renewed optimism that negotiators could be making progress on an Iran peace deal.

Bean oil futures fell along with crude oil, which at the time of writing, was down more than $6 per barrel.

"Soybeans and soy products fell in unison Wednesday, pressured by favorable weather and talk of getting closer to a peace deal with Iran. Early Wednesday morning, President Trump suggested peace talks are in the final stages, which encouraged selling, with nearly 70% of the soybean crop planted," Mantini said.

On Wednesday, the Energy Information Administration reported that for the week ending May 15,US ethanol production averaged 1.11 million barrels per day, above 1.08 mmb/d a week ago and 1.04 mmb/d a year ago.

The four-week average output at 1.06 mmb/d was above 1.02 mmb/d during the same time last year.

Midwest ethanol production averaged 1.06 mmb/d, above 1.02 mmb/d in the previous week. Four-week average output at 999,000 b/d, compared with 965,000 b/d a year ago.

Domestic ethanol inventories ended the week at 24.9 million barrels, unchanged from a week ago, and equal to a year ago.

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