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US Biofuels Update: Soybean Futures Rally on Strong Biofuel Demand, End Week Higher

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Biofuels feedstock futures closed sharply higher on Friday, ending the week on a high note, helped by another strong batch of flash sales announced by the US Department of Agriculture, propelling soybeans to another double-digit higher finish.

The Chicago Board of Trade November soybean futures contract closed 1.58% higher at $12.88 per bushel, while the CBOT September soybean oil futures contract settled 3.81% higher at 70.59 cents per pound.

The Nymex October ethanol futures contract settled 2.19% lower on Thursday at $2 per gallon.

Rhett Montgomery, a DTN analyst, said that demand is pushing the soybean market above three-year highs.

"Technically speaking, the market is overbought and just a couple of weeks away from early harvesting activity throughout the US," Montgomery said.

He added that to the upside, the $13 mark is "the clear target for the November contract."

"The sharp nature of the rally has left moving average support well behind current prices in the $12.00 area, though former 2026 highs in the $12.25 to $12.50 area may be areas to watch for support on profit-taking spells," Montgomery said.

On Friday, the USDA announced sales of 182,000 metric tons of soybeans for delivery to China during the 2026/2027 marketing year.

Additionally, 226,000 mt of soybeans were received in the reporting period for delivery to unknown destinations during the 2026/2027 marketing year.

The USDA also reported that 100,000 mt of soybean cake and meal were scheduled for delivery to Germany and the Netherlands each during the 2026/2027 marketing year.

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