Farmer's Report

August 16, 2019


  • The August soybean oil contract closed last week at $.2958, up 126 points for the week of Aug. 5, 2019.
  • Media reports that President Trump has suggested a 10% tariff on the remaining $300 billion in Chinese exports, effective Sept. 1, 2019. Reports indicate that the remaining tariffs would be mainly on finished goods and not agricultural products. Media is additionally reporting that trade talks are currently scheduled to resume in September. However, on Monday, Aug. 5, 2019, it was reported that China stated that they will halt buying any and all U.S. agriculture products indefinitely.
  • The spot oil share value has increased by 3.6% since the beginning of June. Analysts are stating this is based on tightening domestic soybean oil stocks and continued strong demand for biodiesel production.
  • The weekly soybean crop condition rating update came in at 54% good to excellent, unchanged from last week and still below the five-year average of 66%.
  • Analyst report that the U.S. soybean crop is behind in development this year because of late planting. It was reported the week of Aug. 29, only 21% of the crop was in the pod-setting phase, compared to 58% a year ago. The crop is rated at 54% good to excellent, compared to the five-year average of 67%.


Analysts report that stocks continue to build without an export market to China. Weather has improved, but analyst report that canola oil basis levels still are considered weak.


Analysts are stating that palm oil prices have shown more resiliency over the past two weeks, due to an improved forward global demand picture and the recent lower pricing when compared to historical averages.

The data contained in the Farmer’s Report is provided for informational purposes only, is not tailored to your specific purchasing needs, and is not intended as a substitute for any other publicly-available market data or information. The Farmer’s Report is compiled from the last-received market data provided by the United States Department of Agriculture (USDA) and/or other market sources, and is subject to change without notice. Nothing herein is the opinion of US Foods®. US Foods neither assumes any legal liability nor makes any warranty or guaranty, either express or implied, regarding the completeness, accuracy or usefulness of this information.