Soybean Oil
- CME soybean oil futures were mostly steady through Wednesday, compared to Wednesday of the prior week
- The USDA is scheduled to release its Prospective Plantings and Quarterly Grain Stocks reports on March 31
- According to Brownfield Ag News, U.S. EPA administrator Lee Zeldin says a major announcement on biofuels policy is expected before the end of March. University of Missouri ag economist Ben Brown recently told Brownfield that if the EPA’s proposal is finalized as presented last summer, it would increase soybean demand and provide certainty to the markets
- Domestic soybean crush rates remain strong on the back of record high margins and ample soybean supplies, according to analysts
- Energy prices remain volatile but are still up sharply over the past few weeks, lending underlying support to the soybean oil market due to increased biofuel margins, according to analysts
- The Brazilian soybean harvest is approaching 70% complete, with most private analysts still calling for near record production
Canola
- The Intercontinental Exchange spot canola seed futures were slightly lower this week, and continue to look to the soybean complex for direction, according to analysts
- Traders are closely monitoring Canadian canola planting intentions, as input costs such as fertilizer and fuel continue to soar, according to analysts
- Canola oil basis offers through Q3 remained firm this week, as reported by cash dealers
Palm Oil
- Palm oil prices on the Kuala Lumpur Commodity Exchange remained mostly steady this week, as the market continued to consolidate recent gains
- Palm oil’s discount to soybean oil the global cash markets has narrowed significantly over the past three weeks. Freight and Insurance costs for palm oil shipments are up significantly, according to analysts
- According to Business Standard, Indian vegetable oil refineries are curtailing purchases of palm oil, betting that the Iran war-driven price rally will not last and that they can replenish stocks after the conflict ends. India's palm oil imports are projected to fall to 680,000 tons in March from 847,689 tons in February
Mayo & Margarine
- The CME soybean oil market, palm oil prices on the Kuala Lumpur Commodity Exchange and the USDA butter market were mostly steady this week