- U.S. soybean futures fell to their lowest in nearly two months alongside weaker global vegetable oil prices that have been dropping from multi-year highs.
- CBOT July soybeans (S_1:COM) settled -1.2% to $14.48-1/2 per bushel, dropping as low as $14.42-1/2 for the contract's lowest level since April 20.
- July soybean oil plunged 5.3% to 62.07 cents per pound, capping a sixth straight daily decline from an all-time high 73.74 cents just last week amid enthusiasm in the renewable fuels market.
- ETF: SOYB
- Potentially relevant tickers include ADM, REGI, GPRE, GPP, DAR
- But prices have since cooled as traders took profits and weighed reports that the Biden administration was looking for ways to provide relief to U.S. oil refiners from mandates requiring the blending of biofuels including soy-based biodiesel.
- "All of a sudden you've got all sorts of red flags about that market. You don't know what future demand is going to look like," analyst Terry Linn tells Reuters. "You've got a market that is long from a fund perspective, and that technically is starting to unwrap here."
- The U.S. Department of Agriculture said yesterday it will give $700M in aid to biofuels producers as part of a COVID-19 relief package.