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US Biofuels Update: US, Iran Peace Deal Talk Keeps Soybean Futures Lower

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Biofuels feedstock futures closed lower on Friday, with the soybean market pressured in part by bearish energy influences amid reports that a US-Iran agreement is on the horizon.

The Chicago Board of Trade July soybean futures contract closed 0.13% lower at $11.13 1/2 per bushel, and the CBOT July soybean oil futures contract settled 0.23% lower at 74.28 cents per pound.

The Nymex July ethanol futures contract settled 1.06% lower on Thursday at $1.87 per gallon.

The deal reportedly includes an end to Iran's nuclear program, opening of the Strait of Hormuz, among other aspects, according to a senior Trump official, DTN reported.

Rhett Montgomery, a DTN analyst, said the drop in energy markets, along with this week's US Department of Agriculture data, kept soybeans lower.

"The soybean market gave up early gains on Friday, unable to ignore the bearish influence of the soybean oil market amid outside energy pressure," Montgomery said in a daily note.

He added that USDA's crush adjustment in Thursday's report is more than justified, given the outstanding pace through April and record-high margins.

"Overall, in my opinion, the US balance sheet from 2025-26 to 2026-27 continues to sit on the fence between a price-neutral and price-bullish situation, with reserves still expected to fall to 310 mb by next summer, which is dependent on a record-tying national average yield," Montgomery said.

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