Soybean Oil
- CME spot soybean oil futures were slightly higher through Wednesday of this week, compared to Wednesday of the prior week
- Chinese purchases of U.S. soybeans over the last several weeks puts their total near 8.0 million metric tons of the 25.0 million metric ton target, according to analysts
- Early results through Wednesday from the annual Pro Farmer crop tour had soybean pod counts below last year’s levels and below the USDA’s August yield projections
- In its weekly Crop Conditions report, the USDA rated the soybean crop 61% good-to-excellent, compared to 62% last week and 68% a year ago. The report also showed that 85% of the soybean crop is setting pods, compared to 74% the prior week and the five-year average of 80%
- According to The Western Producer, at 216.65 million bushels, the U.S. National Oilseed Processors Association (NOPA) July crush report was short of the 221.5 million expected by analysts. However, it’s still a July record, and 10.7 per cent more than July 2025. Soy oil stocks were 1.36 million pounds, also short of the projected 1.45 billion
- Firm energy prices, including new contract highs for heating oil, continue to support the vegetable oil markets
Canola
- The Intercontinental Exchange November canola seed futures contract was higher over the past week, mirroring trade in the soybean oil market
- Canola seed prices remain mostly firm and near recent highs, supported by robust early export shipments and strong domestic processing demand, 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. Palm oil’s discount to soybean oil on the global cash market was mostly steady
- According to The Edge Malaysia, Malaysia’s palm oil production rose 9.4% month-on-month to 1.79 million metric tons in July 2026, an increase of 154,000 metric tons, although output remained below last year’s level for the fifth consecutive month
- Traders are monitoring the development of a potentially very strong El Nino weather pattern, according to analysts. Reuters reports that there is a greater than 90% chance of a very strong event during the Northern Hemisphere fall and winter 2026-27, the U.S. Climate Prediction Center said
Mayo & Margarine
- The CME soybean oil market and palm oil prices on the Kuala Lumpur Commodity Exchange were mostly steady-to-higher this week, while the USDA butter market was steady