Soybean Futures Rise on Strong U.S. Crush Data and Higher Oil Prices

Chicago Board of Trade (CBOT) soybean futures closed higher on Monday, buoyed by signs of robust domestic demand and spillover strength from rising crude oil prices. The most-active soybean contract advanced 23.5 cents to settle at $12.16 per bushel.

Crush Rate Hits Multi-Month High

A key driver for the gains was a report from the National Oilseed Processors Association (NOPA) indicating a strong pace of soybean processing. NOPA members crushed 216.65 million bushels of soybeans in July, a figure that provides a strong signal of demand for soybean oil and meal.

• The July crush volume was up 1.1% from June's 214.34 million bushels.
• The total represented a 10.7% increase from the 195.7 million bushels processed in the same month a year prior.
• The daily average crush rate, however, moderated slightly to 6.989 million bushels from 7.145 million bushels in June, according to NOPA data.

Broader Market Influences

Soybeans also found support from a rally in the energy sector. Higher crude oil prices can increase the economic incentive for producing soy-based biodiesel, a key source of demand for soybean oil. Corn futures also edged higher, with the most-active contract rising 6.25 cents to $4.89-1/2 per bushel.

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Conversely, wheat prices declined as investors took profits following a rally last week. The wheat market continues to find underlying support from ongoing disruptions to grain exports from the Black Sea region involving Russia and Ukraine.

Focus Shifts to U.S. Crop Tour

Market participants are now turning their attention to the U.S. production outlook, with the Pro Farmer Midwest Crop Tour set to begin this week. Traders are awaiting the tour's field assessments for a clearer picture of corn and soybean yield potential, particularly after the U.S. Department of Agriculture (USDA) recently lowered its official production forecasts.

Uncertainty over crop conditions has been heightened by heavy rains in parts of the Midwest, which have raised concerns about excess moisture in some fields. The market will get its next update on crop health when the USDA releases its weekly crop progress report later on Monday.