Soybeans Rally to 26-Month High

Soybean futures traded above $13 per bushel, near their highest since December 2023 as strong Chinese buying and higher oil prices supported the market, while traders weighed the USDA’s latest supply-and-demand report. The USDA’s September WASDE report raised its 2026/27 US soybean production forecast to a record 4.535 billion bushels from 4.519 billion in August, with yields seen at 52.8 bushels per acre. US ending stocks were also projected at 310 million bushels, above market expectations, although down from 320 million in August. Meanwhile, China bought about 1 million metric tons of US soybeans last week, as the world’s top oilseed buyer steps up purchases ahead of Xi Jinping’s expected visit to Washington later this month. Brent crude also climbed above $105 per barrel after Yemen's Iran-aligned Houthis launched a new wave of attacks on Saudi Arabia and Gulf-Iran talks were postponed. Soybeans often track oil prices given their use in biofuel production.

Soybean futures traded around $13 per bushel, near their highest level since December 2023, supported by a fresh wave of Chinese buying of US supplies ahead of Friday’s widely anticipated USDA supply-and-demand report. China has bought around 1 million metric tons of US soybeans this week, including 340,000 tons of purchases confirmed by the USDA, bringing Chinese purchases close to half of the 25 million tons it has committed to buy annually through 2028. The buying comes ahead of a planned meeting between US President Donald Trump and Chinese President Xi Jinping later this month, raising hopes for progress on agricultural trade and potentially lower tariffs on US farm goods. Traders are also watching the USDA report for changes to its US soybean production, yield and ending-stock estimates, which could provide further direction for prices. The USDA’s latest assessment showed that 58% of crops were rated good to excellent, unchanged from the prior week and above expectations.

Soybeans increased to 1307.00 USd/Bu, the highest since December 2023. Over the past 4 weeks, Soybeans gained 13.32%, and in the last 12 months, it increased 26.26%.