Soybeans Jump to 14-Month Peak

Soybean futures jumped to around $12.4 per bushel, the highest since May last year as oil prices surged on escalating Middle East tensions. Crude oil prices climbed to multi-week highs after Iran-backed Houthi militants claimed attacks on two Saudi oil tankers in the Red Sea and US President Donald Trump threatened to bomb Iranian infrastructure in response to any attacks on ships transiting the Strait of Hormuz. Soybeans often track crude oil due to its use as a biofuel feedstock. Additionally, prices remain supported by strong export demand, particularly after a fresh round of large US sales to China and other buyers reported this week. USDA confirmed sales of 340,000 metric tons to China, 246,634 tons to Mexico, and 110,000 tons to an unknown destination, following another 136,000-ton sale to China earlier in the week. Meanwhile, the USDA rated 66% of US soybean crops in good-to-excellent condition, up one percentage point from the previous week and above market expectations.

Soybean futures traded above $12.2 per bushel, hovering near a nine-week high as renewed Chinese buying and higher crude oil prices offset better-than-expected US crop conditions. The USDA rated 66% of US soybean crops in good-to-excellent condition, up one percentage point from the previous week and above market expectations. However, ongoing US-Iran fighting near the Strait of Hormuz and broader disruptions in energy supplies beyond the Middle East kept oil prices sharply higher, boosting the outlook for biofuel demand. Chinese buying also reinforced bullish sentiment, with the USDA reporting private export sales of 340,000 metric tons of US soybeans to China for delivery in the 2026/27 marketing year. Meanwhile, China's June soybean imports from the US fell 20.6% year-on-year to 1.27 million tons, reflecting the impact of earlier trade tensions, while imports from Brazil rose 13.7% to 12.08 million tons, lifting China's total soybean arrivals to a record 13.55 million tons in June.

Soybeans increased to 1217.00 USd/Bu, the highest since May 2026. Over the past 4 weeks, Soybeans gained 9.02%, and in the last 12 months, it increased 19.84%.