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US Biofuels Update: Soybeans Up on Chinese Demand Hopes

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Chicago soybeans firmed on Wednesday as rumors that China was looking to purchase US crop buoyed demand sentiment, but plentiful supplies capped gains.

The July soybean contract on the Chicago Board of Trade rose for a third straight session to reach its highest in almost two weeks. In early trade, it edged higher by 0.62% to $11.37 per bushel.

The July CBOT soybean oil contract inched up 0.30% to 73.14 cents per pound, partially offsetting the previous session's losses.

China's Sinograin reportedly inquired about US soybeans for late 2026 to early 2027 delivery, according to ADM Investor Services, as US offers slipped to a slight discount to Brazilian cargoes.

Signs of Chinese buying emerged a month after the US and China held a summit and agreed on a $17 billion annual purchase of US agriculture products.

However, ample supplies weighed on the market, limiting gains in the soybean complex.

In the US, soybean planting has reached 95% as of June 14, up from 93% recorded a year ago, which was also the average pace in the last five years.

The USDA rated 66% of crops in good-to-excellent condition, higher than the previous week's 65% and comparable to the prior year's percentage.

In Brazil, soybean harvest has concluded and "the market is currently in a phase of absorbing the record-breaking Brazilian production," price reporting agency MySteel said.

Meanwhile, July ethanol prices on the NYMEX fell 1.61% to $1.83 per gallon on Tuesday, with the market awaiting release of weekly exports, production, and inventory data, due on Wednesday.

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