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US Biofuels Update: Soybean Futures Rally on Weaker US Crop Prospects

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Biofuels feedstock futures closed higher on Wednesday, with soybeans leading the way and up over 20 cents for the second time in three sessions this week.

The Chicago Board of Trade November soybean futures contract closed 1.68% higher at $12.37 1/4 per bushel, while the CBOT September soybean oil futures contract settled 0.24% higher at 69.69 cents per pound.

The Nymex October ethanol futures contract settled 0.25% higher on Monday at $2.04 per gallon.

Rhett Montgomery, a DTN analyst, said the soybean market regained lost ground from Tuesday's reversal from highs.

The analyst said that both this week's Crop Tour and the national US Department of Agriculture crop ratings at the start of the week suggest downward pressure on the 52.7 bushels per acre USDA yield forecast in last week's reports.

"Export sales have been the star of the show recently for soybeans, with China leading the way and having bought at least in the area of 200 million bushels over the past six to seven weeks," 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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