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COMMODITY OIL TRENDS

Farmer's Report

SOY, CANOLA & PALM OIL Trends - July 26, 2024

SOY OIL

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

Reported market drivers:

  • The USDA reported the bean crop at 68% good-to-excellent this week, unchanged from 68% last week, and above the 54% rating at this time last year. The current 14- day weather forecast calls for warmer and drier weather for the growing regions, with 29% of the crop now setting pods, according to analysts
  • Alternative renewable diesel feedstocks, which includes used cooking oil, corn oil, tallow and canola oil, have all moved higher over the past several weeks 
  • Domestic soybean board crush margins remain well above the May low. Spot oil share of product value remains over the 41% level
  • The domestic soybean crush industry is planning significant maintenance downtime during August, in order to prepare for the new crop, according to analysts   
  • U.S. crude and refined soybean oil bases were steady to higher this week, based on cash market offers
  • Energy prices have fallen from their recent highs over the past three weeks, which has helped to pressure vegetable oil prices due to weaker margins, according to analysts

CANOLA

  • The canola seed futures were higher again this week
  • Recent warmer and drier weather in the Canadian prairies has led to increased risk premium in the market, according to analysts
  • Canola oil basis offers were steady to firm this week, and remain at a premium to soybean oil
  • Canola oil demand into the U.S. West Coast remains solid

PALM OIL

  • The palm oil futures market was slightly higher through Wednesday of this week vs. the prior week, and is up 7% year-to-date
  • The seasonal production cycle for palm oil in both Malaysia and Indonesia, which turned higher in April, should run through early November, and current weather conditions remain mostly favorable, according to analysts
  • Cargo surveyors estimate that Malaysian palm oil exports between July 1 and July 20 were up over 65% compared to the same period in June

Mayo & Margarine

  • The soybean oil and palm oil markets were both slightly higher this week, while butter prices were lower

 

 

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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.