Soybean Oil
- CME soybean oil futures were lower through Wednesday, compared to Wednesday of the prior week. At this week’s high, spot futures had rallied 60.8% year-to-date
- In its weekly crop update, the USDA reported that domestic soybean planting is 33% complete, up from 23% the previous week and above the five-year average of 23%. Beans continue to go into the ground at a record pace so far this season, according to analysts
- The USDA reported a 143 million drawdown in domestic soybean oil stocks for March, confirming that the seasonal build peaked a month early, and that demand pull has been strong from the renewable diesel sector
- Energy prices fell sharply mid-week, prompting a solid round of profit-taking in the vegetable oil markets after the extended gains over the last month, according to analysts
- The USDA’s updated Supply and Demand Report, which is scheduled to be released on May 12, is expected by analysts to include the first official look at U.S. new crop production
Canola
- The Intercontinental Exchange spot canola seed futures were lower this week, continuing to look to the soybean oil market for direction, according to analysts
- Canada’s canola seed crush for March was up 15.3% from February and up over 7% year-over-year, according to Statistics Canada
- Canola oil basis offers remained firm through Q3 this week, as the U.S. biofuel program continues to support imports, as reported by cash dealers
Palm Oil
- Palm oil prices on the Kuala Lumpur Commodity Exchange were lower this week, following the setback in the soybean oil market
- The Malaysian Palm Oil Board is scheduled to release its April palm oil production and end-of-month palm oil stocks data on May 11
- According to Reuters, Malaysian palm oil prices are likely to rise about 12%, to 5,200 ringgit ($1,316) a metric ton by mid-July, as higher energy prices from the U.S.-Israeli war on Iran boost biodiesel demand and tighten supplies, analyst Dorab Mistry said
Mayo & Margarine
- The CME soybean oil market and palm oil prices on the Kuala Lumpur Commodity Exchange were lower this week, while the USDA butter market was steady