2025.12.3115:58:36UTC+00Soybean Futures Retreat Amid Strong South American Supply

Soybean futures declined to about $10.40 per bushel due to improved crop outlooks in South America. This drop came despite previous gains that were driven by the late-October trade truce between the US and China, which had raised expectations of increased demand from China and pushed prices to a one-year high of $11.57 on November 17. The subsequent decline was influenced by slower-than-expected Chinese purchases, optimistic production forecasts from South America, and year-end profit-taking. Throughout 2025, soybean futures nonetheless achieved a modest increase of approximately 4%, although the market dynamics have shifted significantly. Brazil and Argentina have bolstered their positions in the global soybean market, increasing competition for US exports. US soybean export sales for the marketing year are down 33% compared to the previous year, marking a 14-year low. Moving forward, attention will be focused on China's purchasing activity and the final yield results from South American producers.