Soybean Oil
- CME soybean oil futures were sharply higher through Wednesday, compared to Wednesday of the prior week. Spot futures are up 48% year-to-date
- In its weekly crop update, the USDA reported that domestic soybean planting is 12% complete, up from 6% the previous week and above the five-year average of 5%
- The spot soybean oil contract reached its highest level since November 2022 this week, as speculative fund traders continued to add to their record net long position, according to analysts
- The National Oilseed Processors Association (NOPA) estimated end-of-March domestic soybean oil stocks at 2.039 billion pounds, well below the average pre-report trade estimate of 2.173 billion and compared to 2.080 billion in February and 1.498 billion in March 2025
- Energy prices remain well above their pre-war levels, providing some tailwinds to vegetable oil prices due to expanded biofuel margins, according to analysts
- The USDA’s updated Supply and Demand Report, which is scheduled to be released on May 10, 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 higher this week, and continue to look to the soybean oil market for direction, according to analysts
- Cargill's Regina canola crushing plant is now open for business. It will be able to process 1 million metric tons of canola seed annually, once operating at full capacity, which should be within a couple of months, according to The Western Producer
- 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 moved higher this week, reacting to the strength in the soybean oil market, according to analysts
- Indonesia’s palm oil association (GAPKI) said that their crude palm oil production in February was 5.5 million metric tons, up from 5.236 million in January, and well above the 4.144 million produced in February of last year
Mayo & Margarine
- The CME soybean oil market, palm oil prices on the Kuala Lumpur Commodity Exchange and the USDA butter market were all higher this week