Soybean Opportunities
Soybeans moved 25-30 cents higher today; the high of the day was $10.71. The EPA announced higher Renewable Volume Obligations for biomass-based diesel, mandating 5.61 billion gallons in 2026, and 5.86 billion gallons in 2027 – up sharply from 3.35 billion gallons in 2025. Biofuel groups and others in the industry had been awaiting this announcement for some time, with rumors circulating that the 2026 blending rate would be 4.65 billion gallons. The biofuel industry was seeking at least 5.25 billion gallons to match Renewable Fuel Standard volumes with expected production. Soybean oil was limit up after the EPA’s mandated volumes exceeded market expectations.
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Another important piece of the proposal was a 50% RIN value reduction for imported feedstocks, such as used cooking oil from China. The deadline to put in the final rules is November 30th.
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Yesterday’s WASDE report showed no changes to ending stocks for old crop and new crop soybeans compared to the May report. Old crop ending stocks were estimated at 350 million bushels (mb). New crop ending stocks were estimated at 295 mb, compared to an average estimate of 302 mb. Estimated global soybean supplies for the end of 2025/26 were raised by 0.8% over last month, to 125.3 mmt. U.S. soybean exports were held steady at 1.85 billion bushels for old crop, and 1.815 billion bushels for 2025/26. The USDA left Brazil and Argentina soybean production estimates unchanged.
With the rally in soybeans, it could be time to start thinking about how you plan on managing your risk. If you’re a soybean producer, open an account with Walsh Trading, Inc. using the link below
Hans Schmit, Walsh Trading
Direct 312-765-7311 Toll Free 800-993-5449
hschmit@walshtrading.com www.walshtrading.com
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
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