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US Biofuels Update: US-China Trade Summit Underpins Soybean Futures Market

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Biofuels feedstock futures closed mixed on Wednesday, as the soybean market remained supported by the start of the US-China trade summit.

The Chicago Board of Trade July soybean futures contract closed 0.18% higher on Wednesday at $12.29 per bushel, while the CBOT July soybean oil futures contract settled 1.38% lower at 75.36 cents per pound.

The Nymex June ethanol futures contract settled 1.81% higher on Tuesday at $1.96 per gallon.

Rhett Montgomery, DTN analyst, said the new-crop soybean futures reached another 2026 high for the contract at $12.07 per bushel.

"Soybean futures were higher for a fourth straight session on optimism as President Trump arrives in China for meetings with China's President Xi," Montgomery said in a daily note.

He added that soybean futures also drew support from cuts to old crop US supplies by the US Department of Agriculture on Tuesday, and the "borderline bullish" outlook for 2026-27, dependent on where production lands.

On Wednesday, the Energy Information Administration reported that for the week ending May 8, US ethanol production averaged 1.08 million barrels per day, above 1.02 mmb/d last week and 993,000 b/d a year ago.

The four-week average output at 1.04 mmb/d was above 1.02 mmb/d during the same time last year.

Domestic ethanol inventories ended the week at 24.9 million barrels, below 26 mmbbls a week ago, and below 25.4 mmbbls a year ago.

Meanwhile, US House lawmakers were scheduled to vote on a measure that would allow nationwide, year-round sales of E15-blended gasoline. If the measure passes the House, it will be sent to the Senate.

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