Hot Commodities: Global Soybean futures spike to four-month high as supply worries weigh

US Soybean futures scaled up further today, adding to recent gains as surging crude oil prices and worries over Indian crop weighed on the market mood. The benchmark US Soybean futures hit four-month high today and currently quote at $12.18 per bushel, up 1.10% on the day. Broad demand outlook over coming year or so is plentiful. International Grains Council or IGC stated in a latest monthly update that world soybean output is predicted to expand by 10 million (m) tonne (t) y/y in 2026/27, reaching a fresh peak on larger Brazilian and US crops. Given the backdrop of record availability amid rising demand for derivatives across key end use sectors, global utilization is seen at a record. However, aggregate stocks are likely to tighten for a second consecutive year, including a modest contraction in key exporters. The commodity had dipped near $11 per bushel at the start of this month amid generally steady supply outlook. However, Indian kharif sowing started on a tepid note and area under Soybeans took a beating by around 40% on year in first week of July. The global Soybean futures also eyed latest spike in Crude oil futures on renewed US-Iran war concerns.

Powered by Commodity Insights