FX.co ★ Soybean Futures Near Mid-December Highs

Soybean futures recently traded around $10.70 per bushel, approaching their highest point since mid-December. This surge is fueled by optimism that China will continue purchasing U.S. soybeans. Discussions at the World Economic Forum in Davos, described as "constructive" by U.S. Treasury Secretary Scott Bassett after meeting with Chinese Vice Premier He Lifeng, have bolstered expectations for ongoing Chinese acquisitions. Reports suggest China has reached its goal of buying 12 million tonnes of U.S. soybeans, spurred by a late-October trade truce. Additionally, a rise in soybean oil prices is supporting futures, as the market anticipates the U.S. Environmental Protection Agency will soon announce final biofuel regulations, potentially including exemptions for small refineries. However, the potential for further price increases could be limited by record soybean exports from South America. Brazil's National Association of Cereal Exporters (ANEC) predicts January 2026 soybean exports will hit 3.79 million tonnes, a 238% increase from the previous year, marking a historic high for the month.