Soybeans Stay Near Multi-Month Lows

Soybean futures held recent gains above $11.2 per bushel but remained near four-month lows, pressured by weaker crude oil prices and a stronger US dollar, while hot US weather raised crop concerns. The National Weather Service forecast temperatures nearing 100 degrees Fahrenheit this weekend, extending as far north as the upper Midwest and as far east as the Carolinas. These elevated temperatures are expected to stretch from the Plains to the Atlantic Coast through July 4. Meanwhile, progress in ongoing US-Iran peace talks has improved shipping activity through the Strait of Hormuz, raising expectations of stronger global oil supply and pushing crude prices lower. Soybeans often track crude oil due to its use as a biofuel feedstock. Additional pressure came from a stronger dollar amid mounting bets on US rate hikes this year, making commodities more expensive for foreign buyers. Traders now look for signs of renewed Chinese demand, following 132,000 tons of US soybeans sold last week.