Soybean Oil
- CME soybean oil futures were lower through Wednesday of this week, compared to Wednesday of the prior week, as speculative traders have booked some profits on long positions, according to analysts
- In its Crop Progress report of the season, the USDA rated the soybean crop 66% good-to-excellent, above the 65% rating last week and equal to the rating a year ago
- In its June World Agricultural Supply and Demand Estimates report, the USDA reduced its 2026/2027soybean oil ending stocks estimate by 20 million pounds, to 1.877 billion pounds compared to 1.837 billion in 2025/2026
- The USDA is scheduled to release its quarterly grain stocks and acreage estimates report at the end of June
- The National Oilseed Processors Association reported that the May domestic soybean crush was 208.79 million bushels, down from 211.9 million in April, and that end-of-May soybean oil stocks were 1.735 billion pounds, well below the average trade estimate of 1.855 billion, and compared to 1.947 billion in April and 1.373 billion in May 2025
- Domestic soybean oil basis offers for both crude and refined products remain firm, reflecting the ongoing strong demand pull from the renewable diesel sector, according to analysts
Canola
- The Intercontinental Exchange spot July canola seed futures were modestly lower this week following the lead of the soybean oil market
- According to the Western Producer, recent rains combined with the delayed start to spring seeding will mean some intended Prairie canola acres will go unplanted this year. However, expectations for a solid upcoming canola crop are keeping the market in check for now, according to analysts
- Canola oil basis offers remained firm this week, as the demand pull from the U.S. biofuel program continues to support the market, as reported by cash dealers
Palm Oil
- Palm oil prices on the Kuala Lumpur Commodity Exchange were slightly higher through Wednesday of this week, slightly narrowing their large discount to soybean oil on the global cash markets
- Malaysian palm oil exports for June 1-15 rose 23.8% vs. last month, according to a private cargo surveyor
- According to Reuters, the El Nińo weather pattern could cause crop yields in Malaysia, the world’s second largest producer of palm oil, to fall by an average of between 8% and 10% this year, the country's economic minister said
Mayo & Margarine
- The CME soybean oil market and the USDA butter market were lower this week, while palm oil prices on the Kuala Lumpur Commodity Exchange were steady