Farmer's Report

SOY, CANOLA & PALM OIL Trends - MARCH 24, 2023


Soybean oil futures were lower on Wednesday, compared to Wednesday of the prior week.

Reported market drivers:

  • The May soybean oil futures contract is currently trading in a rangebound pattern. Profit taking in soybean meal was noted by analysts after the recent rally
  • Soybean oil’s share of product value has risen back above the 38% level. Soybean board crush margins have dropped sharply recently, after peaking in early March
  • Prices of alternative feedstocks for renewable diesel, such as used cooking oil, canola oil and palm oil, continue to trade at a discount to soybean oil
  • U.S. crude soybean oil basis offers are mostly steady this week, but the Argentinian market continues to trade at a significant discount to the U.S. market in the spot position
  • WTI crude oil prices traded down to their lowest level since November 2021 this week. This has helped to pressure the vegetable oil markets in recent weeks, according to analysts


  • The spot canola seed futures moved lower through Wednesday of this week, following the lead of the soybean oil market
  • Canola oil basis offers were mostly steady this week. Canola oil demand has risen on the West Coast, as it can now be used in U.S. renewable biodiesel production and collect the subsidies, per the EPA


  • The palm oil futures market was lower through Wednesday of this week vs. the prior week
  • Seasonal palm oil production in both Malaysia and Indonesia turned higher in mid-March
  • The Malaysian Palm Oil Board reported that end-of-February palm oil stocks were 2.228 million metric tons, down from 2.268 million at the end of January, but in line with analysts expectations

Mayo & Margarine

  • The soybean oil and palm oil components were both trading lower this week. Butter prices have traded mostly steady this week

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.