U.S. soybean futures dropped to their lowest levels in a week on Thursday, primarily due to concerns over weak domestic cash markets, disappointing weekly export sales, and anxieties regarding the U.S. biofuel mandates. This downturn in demand for soybeans was reflected in the trading patterns, with wheat futures also declining, while corn managed to end the day with slight gains. On the Chicago Board of Trade, July soybean futures (SN25) settled down by 8-1/4 cents to $10.42-1/4 per bushel, having dipped to $10.38-1/2, marking its lowest point since June 4. In contrast, CBOT July wheat (WN25) fell by 7-3/4 cents, finishing at $5.26-1/2 per bushel.
Meanwhile, July corn (CN25) saw a small increase of 1-1/2 cents, closing at $4.38-1/2 per bushel. The significant losses in soybean futures were evident in the near-term July (SN25) contract, which echoed the weakening cash markets as several domestic processors reduced their bids for old-crop soybeans. Experts are weighing in on the situation, with Tom Fritz from EFG Group in Chicago stating that there is no immediate threat of a soybean shortage, citing the anticipation of a good upcoming crop despite poor demand. Additionally, the July soy oil futures (BON25) decreased by 0.9%, fueled by concerns about the demand for biofuels.
The U.S. Environmental Protection Agency is anticipated to propose new biofuel blending mandates for oil refiners, potentially introducing a lower biomass-based diesel requirement than had been requested by industry stakeholders. In the wheat market, futures settled at a three-and-a-half-week low, influenced by slowing export demand and typical seasonal declines as the Northern Hemisphere’s winter wheat harvest commences. In its latest monthly supply-demand report, the USDA had slightly reduced its forecast for U.S. wheat inventories by the end of the 2025/26 marketing year, though the wheat harvest estimate stands unchanged at 1.921 billion bushels.