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2025-09-18 19:46:46
[US Soybean Market Under Pressure: Biofuel Policy Adds Uncertainty] ⑴ Chicago soybean futures fell 0.4% to $10.40 per bushel for the second consecutive trading day on Thursday, as a US biofuel proposal fell short of market expectations, weakening soybean oil prices. ⑵ The proposal did not clarify how biofuel blending obligations would be redistributed under the government's small refinery exemption program, leading to high market uncertainty. ⑶ Mandatory biofuel blending consumes a significant amount of soybean oil used to produce renewable diesel. As a result, Chicago Board of Trade soybean oil prices fell 0.6% on Thursday, following a nearly 3% drop on Wednesday. ⑷ Institutional analysts stated that uncertainty remains high regarding the upcoming decision by the US Environmental Protection Agency. ⑸ Meanwhile, China's lack of US soybean purchases amid trade frictions is also putting pressure on the US Midwest soybean market, which is currently experiencing autumn harvest season. ⑹ Despite this, corn and wheat futures prices rebounded, supported by a slightly weaker US dollar. ⑺Corn prices on the Chicago Board of Trade rose slightly by 0.1% to $4.27 per bushel, while wheat prices rose by 0.5% to $5.30-3/4 per bushel. ⑻The market is closely watching the weekly export sales data released by the U.S. Department of Agriculture later on Thursday to assess demand. ⑼The U.S. Secretary of Agriculture said the Trump administration is developing a plan to use tariff revenue to subsidize American farmers.
