Farmer's Report

SOY, CANOLA & PALM OIL Trends - December 2, 2022


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

Reported market drivers:

  • The U.S. soybean harvest is now complete. The Brazilian soybean crop is approximately 85% planted, while planting in Argentina is behind average, at just 35% complete, due to ongoing dry conditions there
  • China has reduced its total soybean imports from both Brazil and the U.S., according to recent USDA data
  • The EPA delayed the release of its 2023/2024 biofuel mandates until Friday, December 2. Analysts think the report could impact short-term market direction
  • Soybean oil prices continue to trade at a near record-high premium to palm oil on the global cash markets
  • U.S. soybean oil basis offers were slightly lower this week, while soybean board crush margins remain at historically high levels through the first half of 2023
  • WTI crude oil futures traded at their lowest levels since early January


  • The spot canola seed futures were higher this week, and remain well above the September lows
  • The pathway for canola oil to move into U.S. biofuel channels is expected to be effective by the middle of January, according to analysts. Canadian canola oil imports for food use continue to expand, according to recent USDA data
  • Canola oil basis offers were mostly steady this week, following the lead of the soybean oil market


  • The palm oil futures market was higher through Wednesday of this week vs. the prior week
  • Palm oil prices are still at a record discount to soybean oil in the global cash market
  • Malaysian palm oil and palm product exports reached a 10-month high in October, due to buying from India, according to the Malaysian Palm Oil Board
  • Seasonal palm oil production in both Malaysia and Indonesia usually moves lower through mid-February, according to analysts

Mayo & Margarine

  • The soy and palm oil components of mayonnaise and margarine were higher week-over-week. Butter prices were 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.