Soybean futures climbed to around $11.8 per bushel, hitting a seven-week high as persistent geopolitical tensions boosted biofuel demand, while Argentine harvest delays tightened global supply conditions.

Argentina accounts for a substantial share of global supply, with domestic processing targets at 41 million tonnes, and continuous rainfall in Santa Fe province has severely disrupted fieldwork.

Harvest activity stalled at just 10% versus a 60% seasonal average, establishing the current 50-percentage-point deficit as a severe logistical deviation.

At the same time, US soybean planting has reached 12%, though widespread rainfall forecasts are expected to disrupt fieldwork in the near term.

Meanwhile, elevated energy prices tied to disruptions in the key shipping route, the Strait of Hormuz, have boosted soybean oil demand for biodiesel production.

Attention now turns to upcoming US-China trade talks next month, which could provide further direction for export demand expectations.
Source: Trading Economics