Biofuels feedstock futures closed mixed on Tuesday, with soybean futures and soybean oil ending lower as follow-through selling emerged after traders judged improved US crop ratings had already priced in near-term weather risk.
The Chicago Board of Trade August soybean futures contract closed 0.33% lower at $11.92 3/4 per bushel, while the CBOT August soybean oil futures contract settled 0.58% lower at 72.40 cents per pound.
The Nymex August ethanol futures contract settled 0.26% higher on Tuesday at $1.965 per gallon.
August soybean futures lost ground after failing to sustain a move above the key $12 level, while weaker soybean oil prices added pressure. Even so, futures remain supported ahead of a critical weather period for US crops, according to DTN analyst Rhett Montgomery.
The US Department of Agriculture rated 65% of the US soybean crop in good-to-excellent condition, up 1 percentage point from the week before but still below the same level last year.
Traders are expected to use the ratings as a benchmark ahead of hotter and drier weather, Montgomery.
State conditions were mixed, with Kentucky and Ohio posting some of the largest weekly improvements. Illinois' good-to-excellent rating fell 2 percentage points to 56%, while poor-to-very-poor ratings rose two points, Montgomery said.
Iowa's soybean crop was rated 74% good-to-excellent, while Minnesota led the top-producing states at 81%, underscoring uneven crop conditions across the US.
Pod setting reached 19% of the US soybean crop, ahead of the seasonal pace. Demand remained firm as China increased soybean purchases, despite Tuesday's end of a four-session streak of reported export sales, according to Montgomery.
Brazil's National Supply Company, also known as Conab, raised its 2026 soybean production forecast to a record 180.6 million metric tons, broadly matching the USDA's latest outlook, Montgomery added.
Brazil and the US remain closely matched in new-crop soybean export offers, with the US holding a slight pricing advantage.