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Investing.com - Bank of America maintained its bearish outlook on wheat and soymeal markets while projecting a strong bullish trajectory for soybean oil entering 2026, according to a market analysis released Monday.
The bank’s commodity research team indicated that price trends for soybeans and corn will largely depend on China’s purchasing behavior and U.S. export flows in the coming months. Analysts noted that if China proceeds with its planned purchase of 12 million tons of U.S. soybeans, both soybean and corn prices could maintain current levels in the short term.
BofA expects both soybean and corn prices to soften in the second half of 2026, citing strong supply prospects from South American producers. This bearish long-term outlook for these commodities contrasts sharply with the bank’s positive view on soybean oil.
Soybean oil enters 2026 with "strong demand prospects, constrained supply and, consequently, a strong bullish outlook," according to the bank’s analysis. The report cautioned that upside potential for soybean oil remains contingent on pending regulatory frameworks that could impact the market.
The analysis also suggested the sugar market has potential for a short-term price rebound, though the bank did not elaborate on specific factors driving this outlook.
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