Soybean oil rises more than 5%, going against other commodities and supporting the grain on Monday in Chicago
Agricultural commodities are down almost everywhere this Monday (16), after the surge last Friday (13), but soybeans are going against the trend and, despite stability, are testing slight gains on the Chicago Stock Exchange. Support comes from new intense highs recorded by oil.
Around 7:20 am (Brasília time), oilseed futures were up between 0.50 and 1.75 points, taking July to US$ 10.70 and September to US$ 10.48 per bushel. At the same time, soybean oil prices were up 4.7% to 5.2% in the main maturities, continuing the gains recorded at the end of last week, when the derivative closed at the high limit on the CBOT.
The soybean oil market has also been driven by new information about the biofuels market in the US, with higher production targets for 2026 and 2027. The RVO (Renewable Volume Obligations), or mandatory requirements for renewable fuels, ended up surprising traders, as it should increase soybean crushing in the US, reducing domestic demand for the oilseed, which is quite positive for the moment since North American exports are compromised by the trade war.
At the same time, markets remain attentive to the weather in the Corn Belt and the development of the country's 2025/26 harvest, as well as conflicts in the Middle East, with attacks between Iran and Israel entering their fourth day, with no forecast of a truce or ceasefire.
"The end of the month is approaching and on the 31st we will have the release of quarterly stocks, planted areas and more consistent estimates on productivity and size of crops. Geopolitical issues aside, there is no reason for prices to rise. Seasonally, the Chinese do not buy American soybeans and will not buy until a tariff is defined that they feel comfortable with. At this time, the Chinese will have the option of South America and will only buy American soybeans if the prices are compatible and competitive. However, we have this war ahead of us, Israel vs. Iran, what will happen?", analyzes the general director of the Labhoro Group, Ginaldo Sousa.
Source: Notícias Agrícolas.