Soybean prices steady as strong crush offsets trade war jitters

Soybean prices on the Chicago Mercantile Exchange were unchanged on Wednesday October 15 amid positive data on US soybean demand, although concerns over the US-China trade war persisted

Key takeaways:

  • November CME soybean prices ticked up 2 cents to $10.09/bu as technical buying lifted prices while weaker crude limited gains.
  • US soybean crush hit 197.86 million bu in September, up 4.2% m/m and 11.6% y/y, beating expectations, while NOPA soyoil stocks dipped to a nine-month low at 1.24 billion lbs.
  • Trade tensions kept price action tight; China’s demand signals were mixed with steady CFR Brazil premiums at +290c/bu and regional basis adjustments across Brazil, Argentina, US Gulf and PNW.

Soybean prices: Futures edge higher on technicals

The front-month November CME futures contract rose by 2 cents per bushel, or 0.25%, day on day to $10.09 per bu at 1pm US Eastern time.

Technical buying supported an uptrend, while falling crude prices capped gains.

Soybean crush hits fourth-highest on record

US soybean crush rose by 4.2% on the month in September to 197.86 million bu, the fourth highest level on record, monthly data released on Wednesday by the National Oilseed Processors Association (NOPA) showed.

The September soybean crush figure – which was up by 11.6% on the year from 177.32 million bu reported in September 2024 – came in above the average market estimate of 189 million-190 million bushels. The wider range of market expectations was 185 million-190 million bushels.

NOPA also showed that soybean oil stockpiles among members fell by 0.2% on the month to 1.24 billion lbs in September, a nine-month low. The stock figure was above market expectations of 1.22 billion lbs and 16.6% higher than the 1.07 billion pounds in the same month in 2024.

Trade and policy developments weigh on sentiment

Despite market participants’ efforts to shift focus to more objective data, soybean prices fluctuated within a narrow range, given ongoing concerns about US-China trade tensions.

US President Donald Trump said on Tuesday he intended to ban imports of used cooking oil (UCO) from China. But the message had a minimal effect on futures, as US purchases of Chinese UCO had already dropped sharply after import tariffs were implemented.

The re-escalation of the conflict dimmed expectations that Beijing might resume demanding US soybeans, weighing on the soybean complex over the past few sessions, while participants await a meeting between Trump and Chinese President Xi Jinping, scheduled for later this month in South Korea.

The US government shutdown continues to leave market participants in the dark regarding US crop and exports data.

Soybean prices: Global basis moves and regional premiums

Soyoil futures traded upward in a volatile session on the CME. The most liquid December CME soyoil contract went up by 0.69% on the day to 50.92 cents per lb at 1pm US Eastern time.

At origin, Brazilian FOB Paranaguá paper market basis for November loading was 5 cents per bu lower at 185 cents per bu over the November CME futures.

The November-loading FOB Santos premium was also 5 cents per bu lower at 297 cents per bu over the November CME futures.

The Brazilian FOB December premium in Paranaguá paper market hub was 3 cents per bu higher at 165 cents per bu over the CME January futures contract.

In Santos hub, the December-loading basis followed the same path, 3 cents per bu higher at 175 cents per bu over the January futures contract.

For the 2025/26 market-year, a May-loading paper was said to have been traded at 42 cents per bu over the May futures contract, but this could not be confirmed by the time of assessment.

The November-loading FOB premium in Argentina was unchanged at 92 cents per bu over November CME futures.

The November-loading FOB premium in the US Gulf and in the Pacific Northwest were unchanged at 83 cents and 96 cents per bu respectively, both over the November futures contract.

Soybean prices: China demand signals and downstream strength

In China, the world’s main destination market, the Dalian Commodity Exchange soyoil contract and soymeal contract both increased from the previous trading day.

The most-liquid January soyoil contract edged up by 0.15% at 8,252 yuan ($1,156) per tonne and the corresponding soymeal contract increased by 0.52% to close at 2,917 yuan per tonne.

Daily soymeal sales in China’s cash markets were reported at around 129,000 tonnes, mostly for nearby delivery.

The November soybean CFR China (Brazil) premium was assessed at 290 cents per bu over November CME futures, flat from the previous assessment and equivalent to an outright price of $476 per tonne.

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