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COMMODITY OIL TRENDS

Farmer's Report

SOY, CANOLA & PALM OIL Trends - June 28, 2024

SOY OIL

Soybean oil futures were lower on Wednesday, compared to Wednesday of the prior week.

Reported market drivers:

  • The U.S. soybean crop is 97% planted, up from 93% last week, and ahead of the five-year average of 95%, according to analysts
  • The USDA reported the bean crop at 67% good-to-excellent this week, down from 70% last week, but up from 51% at this time last year
  • The soybean oil futures markets made new contract lows this week, following the lead of weaker soybeans and soybean meal
  • Alternative renewable diesel feedstocks, which includes used cooking oil, corn oil, tallow and canola oil, have all moved higher over the past month 
  • Domestic soybean board crush margins have been moving higher, and are now trading between 53-84% above the May low  
  • U.S. crude and refined soybean oil basis were mostly steady this week, while South American premiums continued to firm
  • Energy prices remained firm, lending some underlying support to vegetable oil prices due to stronger margins, according to analysts
  • The USDA released its quarterly grain stocks and acreage reports on Friday, June 28

CANOLA

  • The canola seed futures were lower this week, following the lead of the soybean oil market
  • Canola oil basis offers were steady this week, and remain at a slight premium to refined soybean oil
  • Weather conditions remain favorable for the Canadian canola crop, according to analysts

PALM OIL

  • The palm oil futures market was mostly steady through Wednesday of this week vs. the prior week
  • The seasonal production cycle for palm oil in both Malaysia and Indonesia, which turned higher in April, should run through early November, and current weather conditions remain mostly favorable, according to analysts
  • The Malaysian Palm Oil Association estimated that their palm oil production from June 1-20 was down 6.3% compared to the same period in May

Mayo & Margarine

  • The soybean oil markets fell, while the palm oil markets were mostly steady this week. Butter prices were lower

 

 

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The data contained in the Farmer’s Report is provided for informational purposes only, is not tailored to your specific purchasing needs, and is not intended as a substitute for any other publicly-available market data or information. The Farmer’s Report is compiled from the last-received market data provided by the United States Department of Agriculture (USDA) and/or other market sources, and is subject to change without notice. Nothing herein is the opinion of US Foods®. US Foods neither assumes any legal liability nor makes any warranty or guaranty, either express or implied, regarding the completeness, accuracy or usefulness of this information.