Soybeans Extend Rally to 7-Week High

Soybean futures climbed above $11.9 an ounce, extending their rally to a seven-week high, supported by renewed Chinese demand for US supplies and higher crude oil prices. A fresh wave of US strikes on Iran following recent attacks on ships transiting the Strait of Hormuz, fueled concerns over renewed disruptions in energy supplies and drove oil prices higher. Soybeans often track crude oil due to its use as a biofuel feedstock. Elsewhere, Chinese importers stepped up purchases of US soybeans as state-owned trader Cofco reportedly booked at least six cargoes for September-October shipment, adding to the 200,000 metric tons already purchased by Chinese buyers. The renewed buying comes after the May summit between Presidents Trump and Xi Jinping, which paved the way for expanded agricultural trade. Traders now await Friday's USDA WASDE report, which is expected to show 2026/27 soybean ending stocks rising to nearly 340 million bushels after the USDA increased planted acreage estimates.

Soybean futures rose above $11.8 per bushel, hitting a five-week high as renewed Chinese demand for US supplies boosted market sentiment. State-owned trader Cofco reportedly booked at least six cargoes of US soybeans for September-October shipment, adding to the 200,000 metric tons already purchased by Chinese buyers, according to the USDA. The renewed buying comes after the May summit between US President Donald Trump and Chinese President Xi Jinping, which paved the way for expanded agricultural trade. The White House said China agreed to purchase at least $17 billion worth of US agricultural products, including a minimum of 25 million tons of soybeans annually through 2028, fueling optimism over export demand for US crops. Supporting prices further, mixed US Midwest weather forecasts fueled uncertainty, with above-normal temperatures expected through mid-July, a critical period for crop development, even as improving rainfall prospects tempered concerns over potential yield losses.

Soybeans climbed to above $11.8 per bushel, hitting a five-week high as mixed US Midwest weather forecasts drove uncertainty, while hopes for stronger Chinese demand continued to support prices. Markets remained focused on forecasts showing above-normal temperatures through mid-July, a critical period for crop development, even as improved rainfall prospects clouded the yield outlook. The market also found support from a sharp rally in soymeal, while USDA's latest acreage estimate, which raised soybean plantings to 85.37 million acres, was largely viewed as already priced in. Investors are now awaiting the USDA's weekly export sales report for confirmation of rumored Chinese purchases after a recent report showed 200,000 metric tons sold to China and 529,000 metric tons to unknown destinations for the 2026-27 marketing year. Additional support came from a decline in the US dollar as expectations of rate hikes eased, making commodities cheaper for foreign buyers.