Soybeans hit 9-month high on biofuel tax credit proposal, trade optimism
BEIJING: Chicago soybean futures rose to a nine-month high on Wednesday, supported by a proposal to extend the biofuel tax credit - boosting demand for US soybeans - and renewed optimism from a temporary truce in the US-China trade dispute.
Trade developments pushed the most-active CBOT soybean contract up $10.81 per bushel, marking a nearly 0.8% increase by 0442 GMT.
The contract touched its highest point since July 26, 2024, and extended gains for the fifth consecutive session.
US House lawmakers unveiled a proposal on Monday to extend the clean fuel tax credit (45Z) until December 31, 2031.
South Korea's NOFI tenders to buy up to 138,000 metric tons corn
Andrew Whitelaw, an agricultural consultant at Episode 3, said that this extension would provide certainty for biofuel production, boosting demand for US soybeans.
He said that the potential 'demand cliff' following the 2027 expiration of the tax credit could significantly pressure crush margins and lead to weaker soybean prices.
Additionally, optimism was fuelled after US President Donald Trump said in an interview on Tuesday that he could envision direct talks with Chinese President Xi Jinping to finalize a US-China trade deal, following a temporary tariff pause between the two countries in Switzerland.
Analysts, however, cautioned that uncertainty persists as the US marketing season draws near.
'In most crop categories, the new crop won't come in until the fall season. So there's still a great deal of uncertainty about what will happen when the 90-day pause wraps up in August,' said Even Rogers Pay, agriculture analyst, Trivium China.
Producers also warned that the tariff pause alone will not help US farmers revive soy sales in China without additional concessions.
Meanwhile, wheat futures dipped 0.1% to $5.17 per bushel, hovering near contract lows due to high US inventories, signalling a better-than-expected supply situation. The USDA projected both US and global wheat-ending stocks for the 2025-26 season above analysts' expectations.
Corn was flat at $4.43 per bushel. US farmers had planted 62% of the nation's corn crop by Sunday, higher than analysts' expectations and ahead of the five-year average for this time of year of 56%, the USDA report showed.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
9 hours ago
- Express Tribune
Breakthrough Battery Tech Promises 1,000-Mile EV Range and 190-Mile Charge in Under Four Minutes
24M Technologies, a US-based battery firm, says it has developed a next-generation electrolyte that could dramatically improve the range and charging speed of electric vehicles (EVs), while performing reliably even in extreme temperatures. 24M Technologies has unveiled 'Eternalyte,' an advanced electrolyte it claims delivers a step change in ionic conductivity — the key factor in how quickly a battery charges and discharges. The company says the breakthrough could power future lithium metal batteries capable of over 1,000 miles of driving range and add 190 miles of charge in under four minutes. Unlike some cutting-edge battery technologies that require overhauls to charging infrastructure, 24M claims its solution does not rely on high-cost MegaWatt charging stations. Instead, Eternalyte enables ultra-fast charging using today's setups. 24M Technologies has announced a breakthrough in battery innovation with the launch of Eternalyte, a next-generation electrolyte that enables ultra-fast charging and exceptional cold-weather #battery #Eternalyte #electrolyte #EV @24M_Tech — Batteries & Energy Storage Technology magazine (@BESTmag_news) June 18, 2025 The electrolyte also promises to solve one of the most persistent EV concerns: performance in extreme cold. According to test data shared by 24M, the battery tech retains full capacity at 0°C and more than 80% at -40°C, addressing winter-related range drops that plague many current EVs. Eternalyte is compatible with a range of battery chemistries — including lithium metal, silicon and graphite-based cells — and can be integrated into existing manufacturing processes, reducing adoption costs for producers and automakers. 24M Technologies, which has largely operated under the radar, is now positioning itself at the forefront of next-gen EV development — offering a potential breakthrough without demanding widespread infrastructure changes. Though the company has not revealed full technical details of Eternalyte, it claims the solution is designed not just for today's EVs but for the battery demands of the next decade.
Express Tribune
15 hours ago
- Express Tribune
WB, IMF climate snub 'worrying': COP29 presidency
Participating world leaders and delegates pose for a family photo during the United Nations Climate Change Conference (COP29) in Baku. Photo: AFP The hosts of the most recent UN climate talks are worried international lenders are retreating from their commitments to help boost funding for developing countries' response to global warming. This anxiety has grown as the Trump administration has slashed foreign aid and discouraged US-based development lenders like the World Bank and the International Monetary Fund from focussing on climate finance. Developing nations, excluding China, will need an estimated $1.3 trillion a year by 2035 in financial assistance to transition to renewable energy and climate-proof their economies from increasing weather extremes. But nowhere near this amount has been committed. At last year's UN COP29 summit in Azerbaijan, rich nations agreed to increase climate finance to $300 billion a year by 2035, an amount decried as woefully inadequate. Azerbaijan and Brazil, which is hosting this year's COP30 conference, have launched an initiative to plug the shortfall that includes expectations of "significant" contributions from international lenders. But so far only two — the African Development Bank and the Inter-American Development Bank — have responded to a call to engage the initiative with ideas, said COP29 president Mukhtar Babayev. "We call on their shareholders to urgently help us to address these concerns," he told climate negotiators at a high-level summit in the German city of Bonn this week. "We fear that a complex and volatile global environment is distracting" many of those expected to play a big role in bridging the climate finance gap, he added. His team travelled to Washington in April for the IMF and World Bank's spring meetings hoping to find the same enthusiasm for climate lending they had encountered a year earlier. But instead they found institutions "very much reluctant now to talk about climate at all", said Azerbaijan's top climate negotiator Yalchin Rafiyev. This was a "worrisome trend", he said, given expectations these lenders would extend the finance needed in the absence of other sources. "They're very much needed," he said. The United States, the World Bank's biggest shareholder, has sent a different message. On the sidelines of the April spring meetings, US Treasury Secretary Scott Bessent urged the bank to focus on "dependable technologies" rather than "distortionary climate finance targets." This could mean investing in gas and other fossil fuel-based energy production, he said. Under the Paris Agreement, wealthy developed countries — those most responsible for global warming to date — are obligated to pay climate finance to poorer nations. AFP
Business Recorder
16 hours ago
- Business Recorder
6th China-S Asia Cooperation Forum held in Kunming: Pakistan, China reaffirm commitment to high-quality development of CPEC
ISLAMABAD: Pakistan and China have reaffirmed commitment to the high-quality development of the China-Pakistan Economic Corridor (CPEC), identifying agriculture technology, mines and minerals, industrial parks, offshore oil and gas exploration, environment protection and connectivity as priority areas for win-win cooperation. Both sides committed to fast-tracking implementation of projects in these sectors to foster socio-economic development and shared prosperity, including through third-party participation in CPEC projects. The affirmation comes after Ambassador Imran Ahmed Siddiqui, Additional Secretary (Asia-Pacific) met with Sun Weidong, Vice Foreign Minister of the People's Republic of China, in Kunming on the margins of the 6th China-South Asia Cooperation Forum (CSACF). The additional secretary and vice foreign minister undertook in-depth exchange of views on the fast-evolving regional and global landscape while reaffirming the enduring strength of the Pakistan-China All-Weather Strategic Cooperative Partnership. They agreed on the importance of maintaining strategic communication and coordination in navigating emerging challenges and harnessing shared opportunities for regional stability and prosperity. The two sides also emphasised the imperative of maintaining the momentum of high-level exchanges, including the upcoming 6th Round of Pakistan-China Strategic Dialogue at the Foreign Ministers' level to even further deepen the mutual trust and cooperation. Underscoring their shared commitment to multilateralism, both sides reaffirmed their resolve to coordinate policies at international fora, particularly at the United Nations, to uphold the purposes and principles of the UN Charter and promote an open, inclusive and rules-based international order. Meanwhile, Pakistan participates in the 6th CSACF in Kunming. Ambassador Imran Ahmed Siddiqui, Additional Secretary (Asia-Pacific) addressed the 6th CSACF in Kunming Friday. Speaking at the Forum under the theme, 'Join Hands for Open and Inclusive Development,' the additional secretary underscored Pakistan's unwavering commitment to multilateralism guided by the purposes and principles of the UN Charter and reaffirmed that peace and development are mutually reinforcing pillars for building a stable and prosperous region. Lauding China's leadership in hosting the Forum, Ambassador Siddiqui noted that high-quality development under Belt and Road Initiative (BRI), exemplified by its flagship project of CPEC, has transformed the socio-economic landscape of the region. The additional secretary emphasised that lasting regional peace in the region cannot be achieved without addressing and resolving long-standing disputes, particularly in territories under foreign occupation. He called for adherence to the Five Principles of Peaceful Coexistence centred on respect for sovereignty and territorial integrity, non-aggression, non-interference, equality and peaceful resolution of disputes, as the cornerstone for regional cooperation. The additional secretary also proposed the establishment of China-South Asia Development Forum (CSADF) which can serve as a high-level mechanism to advance practical cooperation in priority areas driving shared prosperity and inclusive development in the region. Copyright Business Recorder, 2025
