FX.co ★ Soybeans Rebound

Soybean futures have experienced an upward movement, approaching $10.50 per bushel. This rise marks a recovery from a one-month low of $10.34 observed on June 2nd, driven by increasing supply concerns and renewed buying interest, which has tightened availability. Heightened tensions surrounding the Black Sea, amid intensified Ukraine-Russia conflicts, have raised fears of export disruptions, thereby restricting the flow of oilseeds.

In the United States, despite 84% of the soybean crop being planted and 63% having emerged by June 1st, adverse weather patterns—initial rainfall followed by periods of dryness—pose potential threats to yield outcomes. Although 67% of U.S. crops have been rated as good to excellent, these conditions might impact productivity. On a global scale, AgRural has increased Brazil's forecast for the 2024/25 season to 128.5 million tons, indicating strong medium-term supply prospects. However, the early planting seasons in regions such as Mato Grosso do Sul and Paraná have faced challenges due to rain and frost, threatening short-term yields.

In the international arena, anticipated U.S.-China trade discussions and Vietnam's agreement to purchase $2 billion worth of soybeans have enhanced export opportunities. Nonetheless, it's notable that China's soybean imports in April decreased by 43.7% compared to the previous year. Despite this decline, year-to-date imports are still up by 35%. However, China's substantial stockpiles, projected to reach 43.86 million tons by the end of 2025, are expected to fall short of meeting their demand.