Soybean Oil
- CME spot soybean oil futures were lower through Wednesday of this week, compared to Wednesday of the prior week
- In its weekly Crop Conditions report, the USDA rated the soybean crop 63% good-to-excellent, compared to 66% last week and 68% a year ago. The report also showed that 47% of the soybean crop is setting pods, above the five-year average of 39%, as the crop went into the ground quickly this season
- U.S. weather forecasts remain in sharp focus, as we are now deep into the critical “pod setting” stage for the U.S. soybean crop, according to analysts
- According to AgroLatam, renewable diesel and sustainable aviation fuel production reached a record 499 million gallons in June, reinforcing the industry's growing appetite for soybean oil. Analysts say this is not simply a seasonal surge, but evidence of a long-term transformation driven by federal policy, renewable fuel incentives, and expanding domestic processing capacity that continues to reshape demand fundamentals for soybeans
- A significant break in energy prices over the past week has provided headwinds for the vegetable oil markets, according to analysts
- Alternative renewable diesel feedstocks, used cooking oil and tallow, traded steady to modestly higher this week, as analysts expect imports to peak in late August
Canola
- The Intercontinental Exchange November canola seed futures fell sharply this week, following the lead of the soybean oil market
- Heat warnings across parts of the southern Canadian Prairies earlier this week provided some underlying market support, according to analysts
- Canola oil basis offers remained firm this week, as the U.S. biofuel program and solid food demand continue to support the market, as reported by cash dealers
Palm Oil
- Palm oil prices on the Kuala Lumpur Commodity Exchange were lower through Wednesday of this week. Current palm oil prices remain at a solid discount to soybean oil on the global cash market
- According to Trading View, cargo surveyors estimated Malaysia's palm oil exports for July 1–25 increased between 8.1% and 15.9% from the same period in June
- Record-high regional temperatures in Malaysia and Indonesia and potential weather anomalies related to the El Niño weather pattern provide underlying support to the palm oil markets, according to analysts
Mayo & Margarine
- The CME soybean oil market, palm oil prices on the Kuala Lumpur Commodity Exchange and the USDA butter market were all lower this week