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US Biofuels Update: Soybean Futures Drop for 8th Straight Session

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Biofuels feedstock futures closed mixed on Tuesday, with soybean futures unable to sustain a move higher despite positive influence from the soybean oil market, even as soybean oil fell for an eighth consecutive session.

The Chicago Board of Trade July soybean futures contract closed 0.18% lower at $11.13 3/4 per bushel, while the CBOT July soybean oil futures contract settled 0.47% higher at 74.91 cents per pound.

The Nymex July ethanol futures contract settled 0.64% lower on Monday at $1.93 per gallon.

Energy markets are getting mixed messages after President Donald Trump said Tuesday that a deal with Iran was only a few days away, and Trump's social media post that the US must respond after Iran shot down a US helicopter near the Strait of Hormuz.

Rhett Montgomery, a DTN analyst, said the soybean market faces bearish fundamentals from many different fronts.

"With world soybean surplus expected to remain elevated among record levels, traders are showing very little confidence in the need for risk premium in prices," Montgomery said.

In Monday's Crop Progress report, US soybean plantings were reported at 92% complete, still ahead of the average pace for early June. 79% of the crop has emerged, with the US Department of Agriculture reporting that 65% is rated good to excellent, down a point from the week before.

In Monday's Crop Progress report, the USDA said that 97% of the US corn crop is now planted as of the week ending June 7.

Analysts expect the Energy Information Administration to report steady weekly ethanol production and stocks in its Wednesday Weekly Petroleum Status Report.

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A federal judge struck down a Trump administration policy that made it more difficult for wind and solar projects to qualify for federal tax incentives, according to multiple media reports on Monday.US District Judge Colleen Kollar-Kotelly ruled Saturday that the Internal Revenue Service failed to adequately explain why it changed a long-standing standard for determining when a project is considered under construction.Judge Kollar-Kotelly reportedly vacated IRS Notice 2025-42 in a Saturday order because it was "arbitrary and capricious," and violated the Administrative Procedures Act.The decision adds to a series of legal challenges facing President Donald Trump's efforts to slow renewable energy development across the US.To remain eligible for a 30% tax credit and additional bonus incentives, developers must either begin construction by July 4 or place projects into service before the end of 2027.For about 10 years, developers could lock in tax-credit eligibility for four years by either maintaining meaningful construction activity or spending at least 5% of a project's total cost before incentives expired.Last August, the IRS narrowed that flexibility by removing the 5% spending option for most projects while keeping it available only for smaller developments, the reports said.Judge Kollar-Kotelly sent the policy back to the IRS for further review after vacating the agency's guidance, according to the reports.The Oregon Environmental Council, the Natural Resources Defense Council, Public Citizen, the City of San Francisco, and the clean-energy consulting firm Woven Energy brought a lawsuit challenging the changes implemented by the IRS last year.Arguing that the revised policy would discourage project development, the plaintiffs said the changes could also lead to higher electricity costs for consumers.IRS did not immediately respond to' request for comment.

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US Oil Update: Crude Settles Higher After Iran, Israel Signal Pause in Hostilities

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Commodities

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