US Biofuels Update: Soybean Futures End 8-Day Loss Streak With Technical Buying

Biofuels feedstock futures closed higher on Wednesday, with technical buying and increased tension in the Middle East supporting the markets.

The Chicago Board of Trade July soybean futures contract closed 0.83% higher at $11.23 per bushel, and the CBOT July soybean oil futures contract settled 0.42% higher at 75.33 cents per pound.

The Nymex July ethanol futures contract settled 0.91% lower on Tuesday at $1.91 per gallon.

The US launched retaliatory strikes against Iran on Tuesday, with President Trump stating that attacks will continue on Wednesday as well

Rhett Montgomery, a DTN analyst, said the soybean market finally showed some life on Wednesday.

"The soybean complex traded higher as soybeans and meal had become particularly oversold from a technical standpoint," Montgomery said.

He added that robust output will be needed to boost exports. "Traders may at this point be satisfied with the degree long positions have been trimmed, with a lingering degree of risk still present in my opinion within the soybean balance sheet, as strong production will be necessary to support the anticipated bounce back in export demand," the analyst said.

US weekly ethanol production remained unchanged for the week ending June 5, according to the US Energy Information Administration report on Wednesday.

US ethanol production averaged 1.11 million barrels per day, flat from last week and below last year's 1.12 mmb/d.

Domestic ethanol inventories ended the week at 24.5 million barrels, below 24.6 mmbbls a week ago and 23.7 mmbbls a year ago.

Traders also positioned themselves ahead of Thursday's US Department of Agriculture's World Agricultural Supply and Demand Estimates Report.

US Natural Gas Update: Futures Edge Down on Cool Weather Forecasts

US natural gas futures softened further in after-hours trading on Tuesday as abundant supply and mild weather forecasts outweighed demand signals.The front-month Henry Hub contract and the continuous benchmark both eased 0.29% to $3.138 per million British thermal units."Price action remains largely rangebound, with weekly changes still limited to only a few cents across most of the curve," Pinebrook Energy Advisors said in a note.Weather expectations remain a key driver. Cooler-than-normal temperatures forecast for June 14-18 across the Midwest and eastern US are expected to curb air-conditioning demand and put pressure on prices, according to Barchart, citing Vaisala data.It also said Lower-48 natural gas demand rose to 73.2 billion cubic feet per day on Tuesday, up 0.8 Bcf/d from the previous session and 5.8% higher over the year.The US Energy Information Administration's outlook shows a split summer demand profile, with June notably weak before demand strengthens later in the season.For June, the EIA forecasts 240 cooling degree days, down 15% over the year and 9% below the 10-year average, signaling reduced air-conditioning demand at the start of summer.Conditions then tighten into the third quarter, with CDDs rising 8% from a year earlier as hotter weather boosts cooling demand. That late-summer strength is expected to offset the soft start in June.Overall, the EIA still projects 2026 cooling demand averaging 4% above 2025 and 4% above the 10-year average, indicating firmer underlying summer consumption despite the early weakness.Daily US dry gas production was reported at 110.1 Bcf/d on Tuesday, down 2 Bcf/d from the prior day but still up 2.2% over the year, BNEF data showed.The EIA expects US gas output to rise 3.3% in 2026 to 111.0 Bcf/d, with further growth in 2027 driven by Permian associated gas and Haynesville output.Despite steady demand growth, elevated production is expected to keep inventories above the five-year average and cap upside in Henry Hub prices. The EIA projects prices averaging $3.34/MMBtu in the second half of this year and $3.46/MMBtu in 2027, down sharply from prior forecasts.LNG feedgas flows to US export terminals also increased, reaching 17.9 Bcf/d, up 0.3 Bcf/d on the day and 8.7% higher over the week.

EPA Extends Waiver For Summertime National Sales of E15 Blended Gasoline

The Environmental Protection Agency and the US Department of Energy on Tuesday extended the summertime waiver for the sales of E15 blended gasoline through June 29.The waiver regarding the requirements in 40 CFR 1090.215 allows for the production and distribution of a single national gasoline pool with 9% to 15% ethanol content at a common Reid Vapor Pressure standard of 10 pounds per square inch, according to the EPA announcement.In the same waiver letter, EPA is reissuing a waiver for federal enforcement of state-level "boutique" fuel requirements for gasoline under 40 CFR 1090.215. Both waivers share a 20-day effective window from June 10, 2026, to June 29, 2026.The EPA noted that states that have adopted fuel standards under consumer protection and/or air quality statutes may need to waive those provisions in State code to enable implementation of the Federal waiver in the States.In May, the EPA extended a waiver allowing the nationwide summer sales of E15, effective until June 9.

US Biofuels Update: Soybean Futures End 8-Day Loss Streak With Technical Buying

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US Natural Gas Update: Futures Edge Down on Cool Weather Forecasts
US natural gas futures softened further in after-hours trading on Tuesday as abundant supply and mild weather forecasts outweighed demand signals.The front-month Henry Hub contract and the continuous benchmark both eased 0.29% to $3.138 per million British thermal units."Price action remains largely rangebound, with weekly changes still limited to only a few cents across most of the curve," Pinebrook Energy Advisors said in a note.Weather expectations remain a key driver. Cooler-than-normal temperatures forecast for June 14-18 across the Midwest and eastern US are expected to curb air-conditioning demand and put pressure on prices, according to Barchart, citing Vaisala data.It also said Lower-48 natural gas demand rose to 73.2 billion cubic feet per day on Tuesday, up 0.8 Bcf/d from the previous session and 5.8% higher over the year.The US Energy Information Administration's outlook shows a split summer demand profile, with June notably weak before demand strengthens later in the season.For June, the EIA forecasts 240 cooling degree days, down 15% over the year and 9% below the 10-year average, signaling reduced air-conditioning demand at the start of summer.Conditions then tighten into the third quarter, with CDDs rising 8% from a year earlier as hotter weather boosts cooling demand. That late-summer strength is expected to offset the soft start in June.Overall, the EIA still projects 2026 cooling demand averaging 4% above 2025 and 4% above the 10-year average, indicating firmer underlying summer consumption despite the early weakness.Daily US dry gas production was reported at 110.1 Bcf/d on Tuesday, down 2 Bcf/d from the prior day but still up 2.2% over the year, BNEF data showed.The EIA expects US gas output to rise 3.3% in 2026 to 111.0 Bcf/d, with further growth in 2027 driven by Permian associated gas and Haynesville output.Despite steady demand growth, elevated production is expected to keep inventories above the five-year average and cap upside in Henry Hub prices. The EIA projects prices averaging $3.34/MMBtu in the second half of this year and $3.46/MMBtu in 2027, down sharply from prior forecasts.LNG feedgas flows to US export terminals also increased, reaching 17.9 Bcf/d, up 0.3 Bcf/d on the day and 8.7% higher over the week.

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The Environmental Protection Agency and the US Department of Energy on Tuesday extended the summertime waiver for the sales of E15 blended gasoline through June 29.The waiver regarding the requirements in 40 CFR 1090.215 allows for the production and distribution of a single national gasoline pool with 9% to 15% ethanol content at a common Reid Vapor Pressure standard of 10 pounds per square inch, according to the EPA announcement.In the same waiver letter, EPA is reissuing a waiver for federal enforcement of state-level "boutique" fuel requirements for gasoline under 40 CFR 1090.215. Both waivers share a 20-day effective window from June 10, 2026, to June 29, 2026.The EPA noted that states that have adopted fuel standards under consumer protection and/or air quality statutes may need to waive those provisions in State code to enable implementation of the Federal waiver in the States.In May, the EPA extended a waiver allowing the nationwide summer sales of E15, effective until June 9.