Soybeans Hover Near 3-Month High

Soybeans futures were above $14.8 per bushel, hovering at the highest level in three months as eased Covid lockdowns in top consumer China spurred hopes of higher demand.

In the meantime, fresh projections from the USDA’s WASDE report pointed to higher demand from major producers, as increased export sales from Argentina outweighed slower sales from Canada and Paraguay.

To add to the bullish pressure, output for other vegetable oils was revised lower, offsetting higher projections for global soybean output due to strong production in India and Ukraine.

Still, the sharp decline in crude oil prices pressured demand for biofuel feedstock, limiting the rally for soybeans.

The US Environmental Protection Agency will call for smaller-than-expected blending mandates of 20.82 billion gallons in 2023, 21.87 billion gallons in 2024, and 22.68 billion gallons in 2025.