Palm Oil Rally Continues to Narrow Spread to Soybean Oil
The spread between soybean oil and palm oil for the August contracts fell to parity on Friday as vegetable oil markets remained mixed. It is the first time the spread has reached parity since early 2020, when the spread traded around parity for about three weeks. Palm oil prices continue to rally on momentum flows and concerns about production, while soybean oil has been under pressure from producer hedging and fund spreading. Given the fundamental situation and the fact that historically the spread has not been able to hold at that level for a substantial length of time, it seems the spread will likely revert closer to the mean in the coming weeks. However, whether higher soybean oil prices or lower palm oil prices drive the reversion remains in question.
Soybean oil futures were narrowly mixed, but most…
02.21.2025
US animal fats and oils markets finish week strong; broader uncertainty persists
The US animal fats and oils markets ended Friday February 21 on a relatively quiet note, though broader market developments throughout the week have added ongoing uncertainty to the...
02.21.2025
Sausage casings bulletin, February 21, 2025
Runner market commentary
Table 1
02.21.2025
US weekly net soybean meal exports, sales retreat again
In the week to February 13, US net soybean meal and soybean cake sales and exports continued to decline but were above most analysts' estimates, data released by the...