Summary
Soybean futures on the Chicago Board of Trade advanced to a two-week high on Friday as traders reacted to tighter U.S. supply estimates released by the U.S. Department of Agriculture. The session saw gains across major row crops, with corn and wheat also moving higher after the agency's monthly supply update and reported export sales.
Market moves
The most-active CBOT soybean contract increased 13-1/2 cents, settling at $12.32-1/2 per bushel, and touched $12.40-3/4 during afternoon trading, its highest level since October 30. Corn futures rose 3-1/2 cents to $4.46 per bushel. Wheat climbed 9 cents to $5.93-1/4 per bushel after earlier dipping to $5.82, its lowest intraday level since June 30.
USDA report and forecasts
In its monthly report on Tuesday, the USDA lowered its forecast for 2026-27 soybean ending stocks. That adjustment ran counter to analyst expectations, which had leaned toward an increase. The agency also placed U.S. corn stocks below the levels analysts had anticipated. Market participants reacted to those downward revisions in supply estimates, contributing to the price gains across the soybean complex.
Dollar strength and market sentiment
The dollar index climbed to a 19-month high this week, a development cited as a headwind for U.S. grain prices by making them less competitive for international buyers. Some traders noted that losses recorded on Thursday had been excessive, suggesting a partial recovery in sentiment during Friday trading.
Export sales
The USDA also reported on Friday that exporters sold U.S. soybeans to China, Vietnam and unknown destinations. Separately, U.S. corn sales were reported to Mexico. Those reported transactions were noted alongside the supply revisions as part of the market's information set for the week.
Outlook
Friday's trading reflected a mix of supply-side revisions and ongoing export activity. The USDA's lower-than-expected stocks estimates for soybeans and corn were central to the session's price action, while a stronger dollar and recent selling pressure were factors cited by market participants in their assessments.