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US Biofuels Update: Soybean Futures Eke Out Gains With Lower Yield Expectations

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Biofuels feedstock futures closed mixed on Tuesday, but overall they were still generally supported as the market is pricing in lower US corn and soybean yields than the US Department of Agriculture forecast in last week's Crop Production report, though profit-taking followed strong rallies over the past week.

The Chicago Board of Trade November soybean futures contract closed 0.06% higher at $12.16 3/4 per bushel, while the CBOT September soybean oil futures contract settled 2.45% lower at 69.69 cents per pound.

The Nymex October ethanol futures contract settled 0.88% higher on Monday at $2.01 per gallon.

Rhett Montgomery, a DTN analyst, said the soybean market still has support from weaker US yield expectations.

"The soybean market held narrowly late in the session for a third straight higher session on Tuesday but saw futures close well below morning highs (briefly turning lower in the minutes before the close) as selling pressure picked up in vegetable oil markets as well as wheat," Montgomery said.

USDA announced on Tuesday sales of 136,000 metric tons of soybeans for delivery to China during the 2026/2027 marketing year.

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