U.S. soybean futures strengthen amid dry weather in parts of U.S. Midwest

On June 12, as of the week of June 9, 2023, global oilseed prices rose, mainly due to the expansion of the drought in the Midwest of the United States; biofuel policy adjustments are expected to drive soybean oil soaring.

The U.S. Drought Monitoring Weekly Report shows that as of the week of June 6, the area of abnormally dry and moderately dry areas in the Midwest of the United States has increased significantly, mainly due to short-term insufficient precipitation and high temperatures.

For the soybean crop, 39 percent were in dry conditions, up from 28 percent a week earlier and 10 percent a year earlier.

This week, we need to focus on the rate hike pace of the Fed and changes in the U.S. raw wood policy.