Record Diesel Prices Bolster Soybean Market Ahead of President Xi's State Visit
US soybean prices remain range-bound after weeks of gains, buoyed by strong supply and demand fundamentals. The ongoing bullish trendline support is a key driver, with CBOT Soybeans (ZS) trading above its short-term and medium-term exponential moving averages.
The US crop progress report shows 62% of the soybean crop is dropping leaves, indicating harvest readiness without deterioration. This, combined with steady export momentum, shipments are up 11.6% weekly and 34.2% year-over-year, led by China, supports a bullish outlook for supply.
Diesel prices in the US have hit record highs at $6.50 per gallon, bolstering demand for soybean-based oil crushing. This has tightened meal supply relative to beans as crushers run harder, providing a solid rationale for investors to buy the soybean crush trade: long soybean meal futures (e.g., CBOT SM) versus short soybeans (ZS).