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COMMODITY OIL TRENDS

Farmer's Report

SOY, CANOLA & PALM OIL Trends - May 3, 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 18% planted, up from 8% last week, and ahead of the five-year average of 10%, according to analysts
  • The Brazilian soybean harvest is wrapping up, while the Argentine harvest is 30% complete, according to analysts
  • A brief port strike in Argentina early this week led to a wave of meal/oil spreading, based on expectations that U.S. soybean meal export business could increase, according to analysts
  • The average trade estimate for the USDA’s end-of-March domestic soybean oil stocks calls for a 150 million pound increase compared to February
  • Soybean oil’s spot share of product value traded down towards 37.5%
  • Alternative feedstocks for renewable diesel use continue to trade at a discount to soybean oil, despite the recent decline in the futures  
  • U.S. crude and refined soybean oil basis offers continue to be weak, as domestic soybean oil supplies have historically peaked during the month of April
  • WTI crude oil futures are well below their recent highs, as Middle East tensions have eased for the moment, providing additional headwinds for soybean oil prices, according to analysts 

CANOLA

  • The spot canola seed futures were lower this week, following the lead of the soybean oil market
  • Canola oil basis offers were unchanged this week, and remain at a slight premium to refined soybean oil
  • Canada has reported beneficial rainfall over the past week, as their canola planting season begins

PALM OIL

  • The palm oil futures market was lower through Wednesday of this week vs. the prior week
  • Palm oil’s seasonal production cycle turned higher at the beginning of April
  • The Indonesian Palm Oil Association estimated that February palm oil exports were 2.17 million metric tons, down from 2.80 million in January, and down from 2.91 million in February 2023

Mayo & Margarine

  • The soybean oil and palm oil markets were both lower this week, while butter prices were steady

 

 

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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.