Soybeans Steady Ahead of USDA Report

Soybean futures held their recent decline around $11.8 per bushel, remaining near a five-week high as traders adjusted positions ahead of the USDA's closely watched supply-and-demand report. Due later today, the report will incorporate the agency's end-June acreage and grain stocks estimates. Ahead of the USDA's weekly export sales report, analysts expect net sales of old-crop US soybeans for the week ended July 2 to range from 50,000 to 500,000 metric tons, with new-crop sales seen between 150,000 and 500,000 tons. Soybean prices have risen more than 4% so far this week, supported by the USDA's confirmation of private sales of 472,000 tons of US soybeans to China. In addition, reports indicated that Chinese state grain trader COFCO purchased at least 10 cargoes, or roughly 600,000 tons, of US soybeans this week. Higher crude oil prices also lent support amid renewed US-Iran hostilities around the Strait of Hormuz, as soybeans often track oil due to their use as a biofuel feedstock.

Soybean futures fell to around $11.8 an ounce, but stayed near a five-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 Donald 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.