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U.S. soybean futures rallied today to their highest level since June, as soyoil futures rose alongside energy markets and historically high palm oil prices, Reuters reports.
"Soybeans turned higher early and made another leg up. A lot of that was due to sharply higher bean oil, which is following the palm oil," according to Futures International analyst Terry Reilly.
Another strong factor in today's move was concerns about a reduced South American harvest and exports from top soy supplier Brazil, as traders continue to monitor poor crop weather in parts of the continent.
"The market is choosing to ignore soft demand dynamics in China to focus on what it perceives to be lingering production risks in the weeks ahead in South America, coupled with the emerging renewable diesel industry that will significantly ramp up demand for soyoil in the months and years ahead," according to Arlan Suderman of StoneX.
Seven-year high crude oil prices also provided support for soybeans and corn, both key feedstocks for making biofuel.
Soybeans for March delivery (S_1:COM) settled +2.3% to $14.40 per bushel, and March corn (C_1:COM) closed +1.1% to $6.27 per bushel, while wheat (W_1:COM) ended -2.8% to $7.95, as traders took profits after futures surged to two-month highs yesterday.