Soybean Futures Hold Above $13

Soybean futures held above $13 per bushel, near their highest level since December 2023, as fresh Chinese purchases supported demand despite weak US export sales. China has continued buying US soybeans as part of its commitment to purchase 25 million metric tons annually through 2028. The USDA confirmed a 192,000-ton fresh sale to China for 2026/27, following purchases of 202,000 tons a day earlier and 136,000 tons on September 1. US and Chinese officials are also expected to announce measures on agriculture and non-tariff barriers during President Xi Jinping’s visit to Washington this month, raising hopes for lower Chinese tariffs on US farm products. Meanwhile, the latest USDA weekly report showed a net reduction of 94,200 tons in 2025/26 soybean sales for the week ended August 27. However, accumulated exports reached 40.76 million tons, while outstanding sales stood at 1.10 million tons. New-crop demand remained firm, with 2026/27 outstanding sales at 16.28 million tons.

Soybean futures rose above $13.0 per bushel, near their highest level since December 2023 as fresh Chinese buying and signs of tightening crop conditions supported prices. Private exporters reported fresh sales of 192,000 metric tons of soybeans to China for delivery in the 2026/27 marketing year, following 202,000 tons a day earlier and 136,000 tons on Tuesday. The latest deals brought Chinese purchases announced since the start of September to 530,000 tons, reinforcing expectations for stronger US export demand as the new marketing year gets underway. Looking ahead, a potential late-September meeting between Trump and Xi could shape agricultural trade. Meanwhile, the latest USDA crop-progress report showed US soybean good-to-excellent rating fell two percentage points in the week ended August 30, adding to supply concerns ahead of the harvest. Traders now await the USDA’s weekly export-sales report for further signals on overseas demand, particularly from China.

Soybean futures climbed above $12.8 per bushel, hitting their highest level in almost three years as the Trump administration’s latest biofuel policy boosted expectations for soybean demand. The EPA granted 1.76 billion renewable fuel credits in small-refinery exemptions for the 2025 compliance year, nearly double its earlier estimate. However, the agency plans to shift the difference between projected and actual exemptions into the 2026 and 2027 mandates, effectively preserving the lost biofuel demand in future years. The move eased concerns that expanded refinery waivers would trigger a significant decline in crop demand. Soybeans are a key biodiesel feedstock, making biofuel mandates crucial for demand. Meanwhile, Chinese buying has remained supportive, with US exporters reporting multiple sales to China for 2026/27 delivery, including 333,000 metric tons on August 26, following purchases of 488,000 tons on August 3, 238,000 tons on August 7 and 244,000 tons on August 12.