Soybean Prices Rise on Strong China Demand

Soybean markets continued their upward trajectory on Friday, fueled by strong export demand from China and positive market sentiment. Futures contracts saw gains of 3 to 7 cents at midday, while the cmdtyView national average Cash Bean price rose by 5.25 cents to $11.455. This upward movement was notably influenced by the overall positive atmosphere in commodity markets.

In the futures market, August 2026 soybean contracts traded up 3.5 cents at $11.6825, September 2026 contracts gained 6.25 cents to $11.7225, and November 2026 contracts rose 5 cents to $11.8725. Soymeal futures were up $1.30 at midday, with soy oil futures gaining between 30 and 38 points. These increases reflected the strong market demand for soy products.

The U.S. Department of Agriculture (USDA) reported a private export sale of 136,000 metric tons of soybeans to China for the 2026/27 marketing year. Total sales announced for the week reached 641,000 metric tons, all destined for China. Old crop soybean sales stood at 41.79 million metric tons, reaching 101% of the USDA forecast, while new crop sales hit 10.13 million metric tons, a four-year high and more than double the volume from the same period last year.

There were 138 deliveries against August soybean contracts overnight, along with 10 deliveries for August bean oil and 1 for meal. The expiry of August futures on Friday likely contributed to short covering and position adjustments in the market. Market participants are now awaiting the National Oilseed Processors Association (NOPA) data, slated for release on Monday. The estimated 221.5 million bushels of soybeans crushed in July would represent an increase of over 25 million bushels compared to the same month last year.

In a broader economic context, China's efforts to ensure food security and meet its animal feed requirements play a significant role in driving demand. News that China's Sinograin would auction another 360,000 metric tons of imported beans on Wednesday further underscores the sustained global demand. Production estimates from major producers like Brazil and Argentina also continue to influence market prices.

Analysts and market observers suggest that the robust momentum in new crop soybean sales will continue to support the market. The upcoming NOPA crush data and new purchasing announcements from China will be key factors determining the trajectory of soybean prices in the near term. Global weather patterns and crop conditions in South America will also remain influential on pricing in the short to medium term.