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FINWIRES

US Biofuels Update: Soybeans Drop on Lack of China Trade Progress

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Biofuels feedstock futures closed mixed on Friday, as soybean traders, disappointed by a lack of trade deal announcements from the US-China summit, are now taking profits on the past month's gains.

The Chicago Board of Trade July soybean futures contract closed 1.30% lower on Friday at $11.77 per bushel, while the CBOT July soybean oil futures contract settled 0.30% higher at 73.88 cents per pound.

The Nymex June ethanol futures contract settled 1.64% lower on Wednesday at $1.95 per gallon.

Rhett Montgomery, DTN analyst, said traders are moving on from the trade summit.

"In a similar price action to corn, over the past two sessions, July soybean futures erased 52 cents of value, with traders disappointed over the lack of volume-specific details emerging from President Trump's visit to China. Prices have retreated towards the bottom end of the March/April range," Montgomery said.

Meanwhile, the National Oilseed Processors Association on Friday said the US April soybean crush totaled 211.856 million bushels, up 11% over the year but down from March and below the trade's expectation of 214 mb.

April's soybean oil stocks totaled 1.947 billion pounds, up 28% year over year, down from March, and below the trade's expectation of 1.954 billion pounds.

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