Soybean Futures Rise as War Dominates Grain Market Focus

Soybean Futures Rise Amid War Concerns

Soybean futures for July delivery rose 0.9% to $11.95 3/4 per bushel on the Chicago Board of Trade on Thursday, as traders focused on the tentative 60-day memorandum of understanding between the U.S. and Iran.

Corn and Wheat Also Gain

Corn for July delivery rose 0.8% to $4.56 1/4 per bushel, while wheat for July delivery edged up 0.2% to $6.24 per bushel. The geopolitical risk premium continues to influence grain prices.

Crude Oil Influence

Crude oil prices, up 0.9% and staying above $90 per barrel, provided support to grain futures. Grains are linked to oil through their use as feedstock for renewable fuels blended with gasoline.

Drier Weather Forecast

NOAA's Climate Prediction Center forecasts near-normal precipitation over the next 8-14 days for most U.S. Plains and Midwest. However, dry conditions could push grain futures higher, according to analysts.

Drought Eases on East Coast

The U.S. Drought Monitor shows extreme drought has eased in Virginia and North Carolina. However, the Plains states (Texas, Oklahoma, Nebraska) continue to experience severe drought, with less than 5% of Nebraska free from dryness.

Ethanol Inventories Edge Up

EIA reported ethanol inventories at 24.97 million barrels, up 93,000 barrels from the prior week. Daily production fell by 22,000 barrels to 1.089 million barrels per day, within analyst expectations.

Soybean Export Sales Expected to Drop

Analysts surveyed by WSJ forecast weekly soybean export sales between 150,000 and 400,000 metric tons, down from 524,100 tons last week. Traders are watching for fresh Chinese purchases of U.S. agricultural products.