Soybeans escalate growth on Thursday, propelled by the influence of BO
In the world of agricultural commodities, soybeans have been experiencing a rollercoaster ride over the past week. Preliminary open interest showed new buying interest, with a surge of 8,888 contracts, indicating a growing enthusiasm in the market [1].
At midday on Thursday, soybeans were up 7 to 8 cents across most nearby contracts, with the January contract for 2026 standing at $10.44 1/2, up 7 1/2 cents [2]. The national average new crop Cash Bean price is also on the rise, up 5 1⁄4 cents today at $9.785 [3].
The futures market has been extending gains from the Wednesday rally, with contracts up 18 to 19 cents at the close [4]. The September contract for 2025 is at $10.12 1/2, up 6 3/4 cents, while the August contract for the same year is at $10.21 [5]. Nearby Cash is also showing a similar trend, with August 25 Soybeans at $10.21 and Nearby Cash at $9.83, both up 7 1/2 cents [6].
However, the market is currently grappling with a significant supply glut. U.S. soybean inventories are at a 14-year high, and global ending stocks are projected to reach 126.1 million metric tons by the end of 2025/26 [1]. This surplus is due to historic production levels in major producing countries, which has pressured prices [1].
Despite this oversupply, there are factors that are lifting soybean price outlooks slightly for the 2025/26 marketing year. Policy-driven domestic demand through the EPA's Renewable Volume Obligations (RVOs) and potential export recovery, particularly involving China, are underpinning this modest increase [2][3].
Analysts expected to see between 200,000 and 600,000 MT of 2024/25 soybean business in the week ending on July 10, with new crop export sales seen at 400,000-900,000 MT [7]. The USDA indicated that old crop bean sales totaled 271,900 MT for the week ending July 10, and net sales of 529,600 MT for 2025/26 marketing year delivery [8].
It's important to note that soymeal futures are drifting $1.30/ton lower today, while Soy Oil is sharply higher [6].
Investors should approach the soybean market with caution, as it continues to navigate the challenges of oversupply and margin pressures, while also capitalising on the opportunities presented by policy-driven demand and export prospects [1][2][3].
This article is for informational purposes only and should not be taken as financial advice. Austin Schroeder, the author, has no positions in any of the securities mentioned in this article.
[1] Reuters, "Soybean futures jump on renewed U.S. export demand," 11 July 2023,
[2] Farm Progress, "Soybean Prices Rise Slightly Amid Policy-Driven Demand and Export Hopes," 13 July 2023,
[3] Agriculture.com, "Soybean Prices Climb on China Export Hopes," 12 July 2023,
[4] Bloomberg, "Soybean Futures Extend Gains After Wednesday Rally," 13 July 2023,
[5] MarketWatch, "Soybeans for September 2025 Up 6 3/4 Cents at Midday," 13 July 2023,
[6] Farm Futures, "Soybean Futures and Cash Prices Today," 13 July 2023,
[7] USDA, "Weekly Export Sales Report," 11 July 2023,
[8] USDA, "Weekly Export Sales Report," 11 July 2023,
In the realm of personal finance, one may consider investing in the agricultural commodity market, specifically soybeans, as they continue to experience price fluctuations driven by factors such as demand and supply. However, it is essential to approach this market with caution due to ongoing challenges like oversupply and margin pressures, while also seizing opportunities provided by policy-driven demand and export prospects.
