Soy, Canola & Palm Oil Trends 

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 58% last week and 62% a year ago, and reported that the soybean harvest is 17% complete, compared to 12% last week and 18% a year ago
• According to Reuters, soybean processors in the western U.S. Midwest are offering hefty premiums for immediate deliveries of the oilseed, as persistent ​rains delay the early harvest, tightening supplies and forcing some plants to scale back production, according to interviews with grain merchandisers and publicly-reported company ‌data. The scramble for soybeans has sent cash prices soaring, creating an unexpected windfall for farmers able to harvest their crops and get them to market, or sell off the last of their old crops
• Heavy imports of tallow and used cooking oil for renewable diesel use are currently hitting U.S. shores, providing some headwinds for the vegetable oil markets, according to analysts
• According to Farm Progress, President Trump and Chinese President Xi Jinping met at the White House late last week, extending their trade truce, but failing to deliver the concrete agricultural purchase agreements farmers had hoped for
• Spot soybean oil futures share of product value held at 47%, and has rallied back up to 49% over the past few sessions

Canola Oil

• The Intercontinental Exchange November canola seed futures contract was steady this week
• Improved weather conditions over the last week in the southern Canadian Prairies has allowed the canola harvest to pick up after several weeks of wet conditions, 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 lower through Wednesday of this week
• Average trade estimates per Reuters polls have Malaysia’s September palm oil production up over 15% from August, with month-end stocks expected to be near record levels
• According to The Edge Malaysia, palm oil prices are poised to remain under pressure as rising inventories in Malaysia and sluggish buying by the world's biggest importer, India, weigh on the market, and the impact of El Niño has yet to be felt
• Traders continue to monitor the development of a very strong El Niño weather pattern. Strong El Niños have a history of reducing palm production in Malaysia and Indonesia, according to analysts

Mayo & Margarine

• The CME soybean oil market was higher this week, while palm oil prices on the Kuala Lumpur Commodity Exchange and the USDA butter market were lower