Soybean Oil Surge Bolsters Overall Bean Market as Treasury Policy Catalyst

The soybean market experienced renewed strength recently, with soybean oil futures emerging as the primary driver of gains across the complex. Treasury guidance on the 45Z tax credit lifted soy bean oil prices significantly, reducing market uncertainty and creating positive momentum that rippled through related commodities.

Bean Oil Futures Lead Market Rally

Soybean oil futures advanced impressively by 102 to 129 points, marking the strongest performance among soybean complex products. The national average cash price for soybeans climbed 4¾ cents to reach $10.00½, according to cmdtyView data, while soybean futures themselves gained 4 to 5½ cents. However, soymeal futures moved counter to the trend, declining between $1.40 and $2.60. The Treasury’s new 45Z tax credit guidance served as a key catalyst, providing the soy bean oil market with the support needed to sustain recent gains and attract fresh investment interest.

USDA Crush Data Shows Robust Demand Despite December Moderation

The USDA’s latest Fats & Oils report revealed that December soybean crush totaled 229.84 million bushels, falling short of market expectations. Despite this monthly softness, the data pointed to underlying strength in soybean processing demand. Year-over-year comparisons painted an encouraging picture: December crush represented a 4.24% increase from November and a 5.59% gain compared to the same month in the prior year. Since the 2025-2026 marketing year began in September, cumulative crush has reached 891.58 million bushels, up 7.43% compared to the equivalent period last year, demonstrating sustained interest in soy bean oil production and processing.

Global Trade Pressures Ease with EU Import Decline

From July 1 through February 1, the European Union imported 7.29 million metric tons of soybeans, representing a meaningful 1.33 million metric ton reduction compared to the identical timeframe in the previous year. This decline reflects both competitive pressures from alternative suppliers and potential shifts in EU feed demand, which could ease global supply concerns and support U.S. soybean export prospects.

March Settlements Reflect Broad-Based Strength Across Contracts

Recent price action across key contract months demonstrated consistent upward momentum:

• March 26 Soybeans settled at $10.65¾, up 5½ cents
• Nearby Cash closed at $10.00½, gaining 4¾ cents
• May 26 Soybeans finished at $10.77¼, advancing 4¾ cents
• July 26 Soybeans ended at $10.90½, also up 4¾ cents

This broad-based strength across multiple contract months, supported by soy bean oil’s exceptional performance and policy tailwinds, suggests the market is building a foundation for sustained prices in the near term.