CBOT: Soybean Rally Continues, Market Strengthened by Soy Oil Surge

16-Jun-2025 06:50 PM

Soybean prices recorded a gain of 5 to 7 cents during Monday morning trading, primarily driven by strength in the soy oil market. Soy oil rose by 364 points, utilizing a major portion of its 450-point expanded limit.

Following Friday's EPA announcement, the soybean market received solid support. Nearby contracts climbed 25 to 28 cents, pushing the nearby July contract up by 12.5 cents for the week, while the November contract gained 17.75 cents.

Open interest increased by 12,121 contracts on Friday, indicating rising investor participation.

Soymeal and Soy Oil Performance:

Soymeal futures declined by $3.20 to $3.40 per ton, with the July contract ending the week down by $3.80.

On the other hand, soy oil led the rally, with most contracts hitting the 3-cent limit-up. The July soy oil contract recorded a weekly gain of 311 points.

EPA RVO Announcement Impact:

The EPA proposed new Renewable Volume Obligations (RVO), setting biomass-based diesel limits at 5.61 billion gallons for 2026 and 5.86 billion gallons for 2027 — significantly higher than earlier market estimates. 

This announcement boosted buying interest particularly in soy oil, which in turn lent strong support to the soybean market.

Investors are now closely watching upcoming government policies and weather developments for further cues.