Soybean futures rose toward $11.8 per bushel, approaching a six-week high as geopolitical tensions and trade-related developments lifted demand. Ongoing tensions and uncertainty in diplomatic efforts between the US and Iran continued to drive crude oil prices higher, which in turn increased demand for soybean oil, a key feedstock in biodiesel production. Investors also remained cautiously optimistic about the expected trade talks between the US and China next month, a key demand driver. For now, China relies heavily on South America, particularly Brazil, for their soybean needs, and Beijing plans to cut back on imports of a number of commodities. On the supply side, Brazil’s harvest is nearing completion, though Argentina faces weather-related delays, while US conditions remain supportive with 12% of soybeans planted, well ahead of the five-year average. Looking ahead, traders await USDA’s key supply and demand update due May 10, alongside CONAB’s next Brazil assessment on May 14.
