FX.co ★ Soybean Futures Steady Amid Trade Uncertainty

Soybean futures remained steady around $10.40 per bushel as the market keenly watched developments in U.S.–China trade discussions and kept an eye on increasing export competition from Brazil. Market sentiment was also negatively impacted by concerns about possible budget cuts to the U.S. Environmental Protection Agency, which could in turn diminish demand for biofuels. Regarding trade matters, U.S. President Trump reiterated that China is still open to reaching a deal, although no meeting with President Xi is currently scheduled. In response, Beijing has stated it is examining a U.S. proposal to restart negotiations regarding tariff-related issues. Meanwhile, StoneX has adjusted its forecast for Brazil’s soybean crop for 2024/25, increasing it to 168.4 million metric tons, up from its previous estimate of 167.5 million, owing to strong yields in the Mato Grosso region. In the U.S., soybean planting was reported at 30% as of the previous Sunday—exceeding the five-year average of 23%, yet slightly missing analysts' projections of 31%. The USDA’s supply and demand report, expected next Monday, is anticipated to reveal a modest reduction in soybean stock levels.