Soybean Prices Rise Globally as Trade Talks and USDA Report Loom

Global oilseed prices surged last week as optimism grew around the upcoming US-China trade talks and market sentiment improved. The July soybean contract on CBOT closed at $10.5725 per bushel, up 1.5% from the previous week, while Gulf soybean prices for June shipments rose 1.6% to $11.2575 per bushel.

Driving the market were lower-than-expected US soybean ratings, a weaker US dollar, and stronger crude oil prices. However, South American harvests and low seasonal US soybean exports limited price gains.

The USDA monthly report on June 12 and the soybean acreage report at the end of the month are expected to influence market expectations. Meanwhile, US soybean exports face stiff competition from South America. Argentine soybean FOB prices climbed 2.1% to $395 per ton, remaining the lowest globally, while Brazil’s exports for May hit 14.1 million tons, up 4.9% year-over-year.

China, the world’s largest soybean importer, also diversified its protein sources by approving rapeseed meal and soybean meal imports from Uruguay to stabilize its feed supply.

Weather continues to shape the US Midwest crop outlook, as rainfall replenished soil moisture, but more heat is needed to boost early soybean growth. Meanwhile, April US soybean crushing reached 202.33 million bushels, up 13.5% year-over-year, but soybean oil stocks fell to 1.976 billion pounds, offering price support.

As the market awaits the USDA report and trade negotiations, uncertainty around tariffs, weather conditions, and South American competition will keep traders on edge.