Chicago soybean futures are on track for a second consecutive weekly loss as of Friday, due to favorable weather conditions in the U.S. Midwest and a surplus of global supply. The most-active soybean contract saw a modest increase of 0.02%, reaching $10.17 per bushel, though it remained close to an 11-week low. Warm temperatures and rain have provided optimal conditions for soybean and corn cultivation in the Midwest.
Forecaster Vaisala predicts widespread rainfall this week, which is expected to further enhance soil moisture levels. In Argentina, soybean sales surged in early June, reaching 4.71 million tons in the first 18 days, a significant increase from the previous year. This surge comes as farmers rush to finalize sales ahead of a scheduled export tax increase on July 1.
Additionally, anticipatory selling pressure has affected the market as traders prepare for the first notice date for July contracts of soybeans, wheat, and corn. Wheat and corn are also projected to experience weekly losses due to strong crop production expectations and favorable growing conditions. Wheat saw a slight increase of 0.47%, reaching $5.39 per bushel, while corn gained 0.5%, reaching $4.06 per bushel, even though both remain near eight-month lows.
On Thursday, the International Grains Council upgraded its 2025-26 world wheat crop forecast by 2 million tons, raising it to 808 million tons. In Argentina, recent dry weather contributed positively to wheat planting for the same period, especially in critical farming regions previously hindered by excess moisture from May’s heavy rainfall. Traders are now looking forward to upcoming crop progress and quarterly stock reports from the USDA on June 30.
According to sources, commodity funds were net sellers of Chicago Board of Trade wheat and soymeal futures on Thursday, while being net buyers of soyoil contracts.