CICC Wealth Futures: The strength of crude oil significantly enhances the economic viability of biodiesel blending; U.S. soybeans are also boosted as a result.

Supported by technical buying and rising oil prices, CBOT soybean futures market rebounded on Tuesday, with soybean oil rising strongly and soybean meal nearly flat. No new round of negotiations between the U.S. and Iran has been launched, and concerns over Middle East tensions have driven oil prices higher. The strength in crude oil has significantly improved the economics of biodiesel blending, supporting U.S. soybean oil as a raw material for biodiesel, which in turn has benefited U.S. soybeans. Planting in the U.S. for the 2026 spring season is underway, with weather in major producing areas attracting attention. The USDA crop progress report shows that as of the week ending April 19, soybean planting progress was 12%, in line with market expectations, compared to 7% last year and a five-year average of 5%. Brazil’s soybean harvest is nearing completion, with the USDA forecasting a yield of 180 million tons. Agricultural consulting firm Safras & Mercado states that Brazil’s soybean output will increase by 3.7% year-on-year to 178.11 million tons. Argentina’s soybean harvest rate is around 10%, with USDA predicting a yield of 48 million tons. As the weather window in South America narrows, market focus shifts from South America to North America. The continued easing of global soybean supply remains a limiting factor for price recovery. (CICC Wealth Futures)