Soybeans hit three-month high on strong demand, wheat under pressure

SINGAPORE: Chicago soybeans rose on Thursday to their highest in more than three months, as brisk US domestic demand and expectations of renewed Chinese purchases underpinned the market.

Wheat lost more ground, pressured by abundant global supplies, while corn eased after rising in the previous session.

The most-active soybean contract on the Chicago Board of Trade (CBOT) was trading 0.2% higher at $11.67-3/4 a bushel, as of 0404 GMT, after hitting its highest since November 18 earlier in the day.

Wheat lost 0.1% to $5.69-1/4 a bushel and corn gave up 0.2% to $4.41-1/4 a bushel.

Hopes of strong US demand for making soybean oil-based biofuel and China’s interest in US cargoes supported Chicago futures.

“Oilseed markets are eager to see details within the latest recommendations on biofuels shared with the White House,” said Josh Lawrence, advisory consultant at agricultural brokerage IKON Commodities in Sydney.

The US Environmental Protection Agency said it would send its proposal for new biofuel blending volume mandates to the White House, with an expected rule to be finalised by the end of March.

There is market talk of Chinese interest in US soybean shipments from the Pacific Northwest.

“China has returned from New Year celebrations with a renewed appetite across grains and oilseeds,” Lawrence said.

Traders initially expected that US President Donald Trump’s decision to introduce a global 10% tariff - and his pledge to increase that to 15% - would cool buying interest from China.

But Beijing’s measured response to Trump’s actions and the end of China’s Lunar New Year holiday break maintained hopes for more demand.

Trump announced the 10% levy after his tariffs put in place in 2025 under an emergency economic statute were struck down by the US Supreme Court on Friday.