CBOT soybeans plummet as soyoil falls to daily limit

CHICAGO, May 15 (Reuters) - Chicago Board of Trade soybean futures on Thursday plummeted from the previous session's 10-month high, pressured by a sharp drop in soyoil caused by concerns over U.S. biofuel targets, traders said.

• The most-active soyoil futures BOcv1 on the Chicago Board of Trade fell to their daily limit, at 49.32 cents per pound.

• That pushed soybeans Sv1, which are crushed to produce soyoil and soymeal, down to a low of $10.46-3/4 per bushel. Soybeans had reached their highest price since late July on Wednesday, buoyed by a de-escalation in the U.S.-China trade dispute and optimism about continued U.S. tax credits for biodiesel fuel.

• Concerns over biofuel policy, however, have re-emerged since Wednesday, with rumors that a target for renewable diesel volumes under discussion for next year will come well below the 5.25 billion gallons proposed by an alliance of oil and biofuel producers.

• Optimism over a temporary truce in the U.S.-China trade war, meanwhile, has subsided as analysts await more details on the ongoing negotiations.

• On Wednesday, agribusiness consultancy AgResource estimated U.S. soybean exports may drop 20% and that prices will plunge if the U.S. and China fail to resolve their trade dispute.

• CBOT July soybeans SN25 finished 26-1/2 cents lower to $10.51-1/4 per bushel.

• CBOT July soyoil BON25 fell 3 cents to 49.32 cents per pound. CBOT July soymeal SMN25 rose $4.5 to $296.40 per short ton.