Soybeans rise to 20-month high ahead of expected U.S. biofuel policy update

Soybean futures climbed to their highest level in 20 months on Thursday (February 26) as markets awaited the release of new U.S. biofuel blending quotas from the Environmental Protection Agency (EPA).

The latest set of quotas — known as Renewable Volume Obligations (RVOs) — is expected to be submitted soon to the White House Office of Management and Budget for review, EPA Assistant Administrator Aaron Szabo said during a conference on Wednesday. The move would bring the U.S. farm sector closer to resolving months of uncertainty over biofuel demand.

Corn and soybean oil are the primary feedstocks used by the biofuels industry, and farmers have been closely watching the long-delayed policy guidance, which could be released as early as March.

However, “optimism around demand has largely been priced in, and we are now seeing some of the oil-led gains unwind ahead of the announcement,” analyst Matt Ammermann wrote in a note on Thursday.

Soybean meal also rebounded, supported by expectations that U.S. exports of the protein-rich animal feed will rise following a $38.4 billion trade agreement between the United States and Indonesia.

Exports of soybean meal for the marketing year have reached their highest level in six years, and the trade deal signed last week includes additional significant purchases of U.S. meal in 2026, according to a note from Hightower analysts.

“While the current rally has pushed the discount between U.S. and Brazilian soybeans to its widest level in more than a year, strength in soy products is preventing beans from retreating, and that trend could continue,” Hightower said.

Soybeans rose as much as 0.4%, briefly reaching their highest level since June 2024, even without new signs of buying from top consumer China. Soybean oil climbed 1.6%.

Source: Bloomberg Linea

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