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…
11.22.2024
Biodiesel margins rise, but window of opportunity limited
Biodiesel margins continued to rise during the week to Friday November 22. The bean oil/heating oil (BOHO) spread boosted margins by falling to its lowest level since August 27.
11.22.2024
Gulf prices average higher despite weeklong declines in SBO
For the week ended Friday November 22, packer bleachable fancy tallow (BFT) remained unchanged from the previous week’s average, while Gulf Coast-delivered tallow rose 2.7%, primarily...
11.22.2024
Bloodmeal largest price mover week on week; November cattle on feed higher
US animal protein prices were mixed to mostly higher for the week to Friday November 22, with only meat and bonemeal showing a slight price reduction due to tighter...