Chicago soybean futures declined on Tuesday, pulling back after a sharp two-day rally. The most-active contract dipped 0.23% to $10.67 per bushel, driven by favorable crop weather in the U.S. and weaker soyoil prices, both of which undermined bullish momentum sparked by crude oil gains and stronger biofuel mandates.
Soybeans had hit a one-month high and soyoil a 20-month high on Monday, but traders began booking profits as fundamentals reasserted their influence.
Meanwhile, tensions between Iran and Israel injected volatility into global grain and energy markets. Analysts warned that the region’s role in energy supply could lead to sharp price swings in agricultural commodities through oil-linked cost structures.
“The region is a huge contributor to the energy markets, and these markets have a huge impact on grain pricing levels,” noted Andrew Whitelaw, consultant at Episode 3.
The soyoil contract fell 0.85% to 54.64 cents per pound, reducing upward pressure on soybeans. Traders cited profit-taking and soft demand amid global competition, tariff concerns, and biofuel policy uncertainty.
Corn futures also edged down 0.06% to $4.35 per bushel, as beneficial weekend rains across major U.S. growing regions supported expectations for a strong harvest. However, robust export inspections—1.67 million metric tons in the past week—helped prevent further losses.
On the crop condition front, USDA data showed corn crop ratings tied for the best levels in years for this period. In contrast, soybean crop ratings slipped slightly, though a modest 0.84% price rise to $5.41 per bushel was recorded due to harvest constraints.
The U.S. winter wheat harvest also progressed to 10% completion, up from 4% last week, though still lagging the five-year average of 16%.
Commodity fund activity showed mixed sentiment: net buyers in soyoil futures, but net sellers in corn, soymeal, wheat, and soybeans, suggesting a cautious outlook amid geopolitical risks and macroeconomic shifts.
