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Business Recorder
a day ago
- Business
- Business Recorder
Soybeans climb, soyoil soars daily limit on US biofuel proposal
CHICAGO: US soyoil futures surged their daily limit on Friday and soybeans hit a three-week high after the Trump administration proposed biofuel blending requirements that were above trade expectations, analysts said. Chicago Board of Trade corn futures followed soybeans higher and CBOT wheat rose about 2% on bargain-buying after falling to a four-week low in early moves. As of 10:54 a.m. CDT (1554 GMT), CBOT July soyoil was up 3 cents, its maximum daily limit, at 50.61 cents per pound, while July soybeans were up 25-3/4 cents at $10.68 per bushel. CBOT July corn was up 3-3/4 cents at $4.42-1/4 a bushel and July wheat was up 15-1/2 cents at $5.42 a bushel. Soyoil, a key feedstock for biodiesel fuel, rocketed higher after the US Environmental Protection Agency proposed to increase the amount of biofuels that oil refiners must blend into the nation's fuel mix over the next two years. 'Just coming in with these volumes ... is extremely positive for our domestic (soybean) crush demand for 2026 and '27. It's a big deal,' said Terry Linn, analyst with Chicago-based Linn & Associates. The EPA's move, which also included measures to discourage biofuel imports, was welcomed by the biofuels industry, which had been lobbying on the issue for months. A jump in crude oil prices after Israel conducted strikes on Iran lent early support to commodities. 'Obviously the attack on Iran was the number-one news item, but the EPA release is the big item now. It has kind of taken over,' Linn said. Wheat rose to recover from an earlier four-week low, bucking pressure from the start of the Northern Hemisphere winter wheat harvest. Commodity funds hold a sizable net short position in CBOT wheat futures, leaving the market vulnerable to short-covering bounces.
Business Recorder
15-05-2025
- Business
- Business Recorder
Chicago soybeans drop from 10-month highs
CHICAGO: Chicago soybean futures on Thursday plummeted from the previous session's 10-month high, pressured by a sharp drop in soyoil caused by concerns over US biofuel targets, traders said. The most-active soyoil futures on the Chicago Board of Trade fell to their daily limit, at 49.32 cents per pound. That pushed soybeans, which are crushed to produce soyoil and soymeal, down to a low of $10.46-3/4 per bushel. Soybeans had reached their highest price since late July on Wednesday, buoyed by a de-escalation in the US-China trade dispute and optimism about continued US tax credits for biodiesel fuel. Concerns over biofuel policy, however, have re-emerged since Wednesday, with rumours that a target for renewable diesel volumes under discussion for next year will come well below the 5.25 billion gallons proposed by an alliance of oil and biofuel producers. 'It was disappointing for people who were banking for a bigger number,' said Terry Linn, vice president of Linn & Associates. CBOT soybeans were down 29-3/4 cents to $10.48 per bushel at 11:00 a.m. CDT (1600 GMT). Optimism over a temporary truce in the US-China trade war, meanwhile, has subsided as analysts await more details on the ongoing negotiations.
Business Recorder
10-05-2025
- Business
- Business Recorder
Chicago soybeans, corn higher ahead of US-China trade talks
CHICAGO: Chicago soybean and corn futures bounced on Friday as traders covered short positions ahead of Saturday's meeting between senior US and Chinese officials and a widely tracked US Department of Agriculture report on Monday, analysts said. Front and back month wheat contracts sank to lifetime lows as good weather in the US Plains and lackluster export demand prompted traders and commodity funds to add to already-large short positions. Most-active Chicago Board of Trade wheat futures fell 7-1/2 cents to settle at $5.20-3/4 per bushel, with the July contract hitting a lifetime low of $5.21-1/2 a bushel. 'The wheat market continues to be on a trainwreck,' Terry Linn, vice president at Linn & Associates, said. 'Funds are piling on to the short side.' CBOT soybeans rose 6-3/4 cents to $10.51-3/4 per bushel. CBOT corn closed 2-1/4 cents higher at $4.49-3/4 per bushel. The weekend US-China trade talks in Geneva have been described by White House officials as a step towards de-escalating tensions and containing a trade war between the world's two biggest economies. The soybean market has been particularly sensitive to the tariff standoff between China, the world's biggest soybean importer, and the United States, the world's second-largest exporter of the oilseed. Export sales of US corn and soybeans have also given support to prices. However, ideal planting and growing conditions in the US corn and soy belts have put a lid on prices while the upcoming Brazilian corn harvest is expected to pull global demand away from US corn in the coming weeks. Improving US winter wheat crop conditions and forecast rain in the Black Sea export region have weighed heavily on wheat prices. Traders were also positioning ahead of the USDA's world crop report on Monday that will include its first supply and demand balance sheets for 2025–26.
