Soybean futures slipped below $11.20 per bushel, hovering near four-month lows, after news of a tentative US–Iran agreement pushed crude oil prices sharply lower. Oil retreated when US President Donald Trump and Iran’s deputy foreign minister indicated they had reached a preliminary deal to halt hostilities and restore shipping traffic through the Strait of Hormuz.
Because agricultural commodities are closely linked to biofuel demand, they often move in tandem with crude. Additional downward pressure on soybean prices came from favourable US growing conditions and improving South American supply prospects. The USDA last week raised its forecast for Argentina’s soybean output to 50 million metric tons.
Sentiment has also been undermined by weak Chinese demand for US agricultural products, despite earlier expectations of substantial purchases. At the same time, the US soybean crush pace likely slowed for a third consecutive month in May, as several processing plants were taken offline for seasonal maintenance and repairs, even though crush margins remained historically strong.
