FX.co ★ Soybeans Extend Rally to 7-Week High

Soybean futures rose above $11.90 an ounce, extending their rally to a seven-week high, driven by renewed Chinese demand for US supplies and firmer crude oil prices. A new round of US strikes on Iran, carried out after recent attacks on vessels transiting the Strait of Hormuz, heightened concerns over fresh disruptions to energy flows and pushed oil markets higher. Soybean prices frequently move in tandem with crude oil because soybeans are a key feedstock for biofuel production.

At the same time, Chinese importers have increased purchases of US soybeans. State-owned trader Cofco has reportedly booked at least six cargoes for September–October shipment, on top of the roughly 200,000 metric tons already bought by Chinese buyers. This renewed buying interest follows the May summit between Presidents Trump and Xi Jinping, which helped clear the way for expanded agricultural trade.

Market participants are now looking ahead to Friday’s USDA WASDE report, which is expected to show 2026/27 soybean ending stocks nearing 340 million bushels, after the agency raised its estimates for planted acreage.