FX.co ★ Soybean Futures Lifted by China Buying and Energy Price Gains

Soybean futures are currently trading at approximately $10.50 per bushel, maintaining their highest levels since the end of last year. This stability is largely due to traders' anticipatory moves ahead of the USDA's January WASDE report. These prices have been supported by sustained Chinese purchases of US soybeans, with cumulative sales surpassing 10 million tons and approaching the 12 million-ton target that US officials had previously mentioned. Notably, private exporters have announced significant new sales to China for delivery in the 2025/26 marketing year, which bolsters demand forecasts. Beyond exports, energy markets have provided a bullish influence: crude oil prices have increased due to concerns about potential supply disruptions and geopolitical tensions, particularly concerning Venezuela. This increase has positively impacted vegetable oil markets. Higher oil prices typically support soybean oil, a crucial feedstock for biodiesel and various other applications. Consequently, this relationship between energy and oilseed markets further strengthens soybean futures.