Rising demand for biofuel strengthens global soybean market prices

18-Aug-2026 02:02 PM

Mumbai. Disruptions in the global trade of crude oil and petroleum products, coupled with high prices, have led many countries to place special emphasis on biofuel production, thereby increasing the demand for soy oil and soybeans. However, the rise in prices has been limited due to robust global production. Brazil, the leading producer and exporter, has recorded record soybean production this year.

A leading analyst firm has projected the average soybean futures price for 2026 at $11.58 per bushel, up from the earlier estimate of $11.30 per bushel. According to the firm, prolonged tensions and conflict between Iran and the US drove up crude oil prices, subsequently boosting the demand for biofuel.

For 2027, the firm projects the average global market price for soybeans to settle at $11.43 per bushel, as the crisis in West Asia is expected to resolve, potentially allowing the international trade of crude oil to return to normalcy. Nevertheless, this projected price level remains quite high. If trade relations between the US and China improve and China agrees to significantly ramp up imports of US soybeans, prices for this key oilseed could receive substantial support.

Harvesting of the new soybean crop is expected to begin in the US next month, while sowing operations will commence in Brazil. Chinese importers are sourcing massive quantities of soybeans from Brazil while keeping imports from the US at very low levels, creating an atmosphere of market uncertainty.