BEIJING/PARIS: Chicago soybean futures eased on Wednesday as traders booked profits after a three-day price rally driven by strength in soyoil and the broader energy market, with continuing tariff uncertainty also pressuring prices.
The most active soybean contract on the Chicago Board of Trade was 0.2% down by 1055 GMT at $10.71-3/4 a bushel, though still hovering near a one-month high.
Support for agricultural commodities such as soybeans and corn has been underpinned by rising energy prices, fuelled by escalating tensions between Israel and Iran. Higher crude oil prices improve the competitiveness of soyoil and corn as biofuel feedstocks.
Market participants are keeping a close eye on developments in U.S. biofuel policy.
A tax bill proposed by Senate Republicans on Monday would extend a clean fuel tax credit through 2031 but reduce its value by 20% for biofuels made from feedstocks produced outside the United States.
Chicago soybeans slip on favourable weather, weaker soyoil
Traders are also monitoring tariff developments between Washington and Beijing, the largest buyer of U.S. soybeans.
China’s move to reduce soymeal use in animal feed could lower soybean imports by about 10 million metric tons by 2030, easing its reliance on foreign supply.
In top producer Brazil, soy exports are forecast to reach 14.37 million tons in June, up from 14.08 million tons the previous week, said Anec, a Brazilian trade group representing grain exporters.
Corn futures rose 0.17% to $4.32-1/4 a bushel, supported by uncertainty over crop weather in the U.S. Midwest, with traders awaiting more definitive forecasts.
Wheat futures rose 0.55% to $5.52 a bushel, buoyed by a slower than average U.S. winter wheat harvest, which reached 10% completion compared with a five-year average of 16%.
Farm office FranceAgriMer has increased its forecast for French soft wheat exports within and outside the European Union in 2024/25, but the EU’s biggest grain producer is still on course for its worst wheat export campaign this century after a rain-hit harvest.
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