Soybean Oil
- CME spot soybean oil futures were higher through Wednesday of this week, compared to Wednesday of the prior week
- In its weekly Crop Conditions report, the USDA rated the soybean crop 58% good-to-excellent, compared to 60% last week and 65% a year ago. The report also showed that 95% of the soybean crop is setting pods, compared to 91% the prior week and the five-year average of 93%
- According to Reuters, the U.S. Environmental Protection Agency granted small refinery exemptions worth 1.76 billion renewable fuel credits for the 2025 compliance year and said it will propose reallocating the waived obligations to larger refiners in future years. The decision capped a week of intense lobbying by the Farm Belt and Big Oil over pending small-refinery exemption requests, pitting farmers who fear lost demand for biofuel crops against refiners seeking relief from costly blending mandates
- The USDA estimated the July domestic soybean crush at another monthly record of 221.9 million bushels. July soybean oil stocks were reported at 1.963 billion pounds, slightly higher than average trade expectations but still down from 2.097 billion in June
- Higher energy prices contributed to the strength in the vegetable oil markets this week, according to analysts
Canola
- The Intercontinental Exchange November canola seed futures rose to a three-year high over the past week
- Traders are closely watching early progress of the Canadian Prairie canola harvest, with varied crop conditions creating supply uncertainty, according to analysts
- Canola oil basis offers remained steady 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 higher through Wednesday of this week, following the lead of the soybean oil market
- According to Market Screener, palm oil producers association GAPKI estimates Indonesia's palm oil output in 2026 at 58.5 million metric tons, below its earlier estimate of 58.8 million tons. It also expects palm oil output for 2027 to drop to 56.8 million tons due to prolonged dry weather from the El Niño weather pattern disrupting plant care
- Traders continue to monitor the development of a potentially very strong El Niño weather pattern, as strong El Niños have had a history of reducing palm production in Malaysia and Indonesia, according to analysts
Mayo & Margarine
- The CME soybean oil market and palm oil prices on the Kuala Lumpur Commodity Exchange were higher this week, while the USDA butter market was lower