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US Biofuels Update: Soybean Futures Drop Due to Improved Crop Conditions; Soybean Oil Rises

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Biofuels feedstock futures closed mixed on Tuesday, with soybean prices pressured by higher weekly crop ratings, while soybean oil rose from higher energy prices due to escalating fighting in the Middle East.

The Chicago Board of Trade August soybean futures contract closed 0.61% lower at $12.18 per bushel, while the CBOT August soybean oil futures contract settled 0.60% lower at 74.23 cents per pound.

The Nymex August ethanol futures contract settled 0.65% higher on Monday at $1.92 per gallon.

Rhett Montgomery, a DTN analyst, said that the soybean market's lowest price traded on Tuesday was still above Monday's low.

"The soybean market relaxed on Tuesday after a very strong session to begin the week; profit-taking and technical-based selling likely played a role, as did a surprising improvement in US soybean crop ratings despite last week's heat," Montgomery said.

In Monday's report, the US Department of Agriculture showed that 66% of the US soybean crop is rated G/E, up 1 point through the past week.

"Despite no reported sales by USDA on Tuesday morning, soybean demand has had a strong run through July thus far, with total new crop sales likely sitting at a four-year high for mid-July. Crush premiums remain strong as well, near $3.80 per bushel gross and well above recent years, though down considerably from the 2026 peak in late May," Montgomery said.

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