Light Profit-Taking Weighs on Soybean and Palm Oil Prices
On Tuesday, world vegetable oil prices were mostly lower outside of the Dalian exchange. Chinese futures rose in response to the strength in soybean oil and palm oil prices on Monday. The decline in soybean oil and palm oil values occurred despite a rally in energy prices. West Texas Intermediate (WTI) futures rallied to test the $40 per barrel level during U.S. trading hours, but resistance left it to settle just below the critical psychological level. Still, the benchmark contract rose nearly 2 1/2 percent to erase most of the decline on Monday.
Strength in energy prices could be crucial if soybean oil prices try to rally as the spread between soybean oil and heating oil prices (HOBO) has stretched back to mid-September highs. The reduction in profitability for biodiesel producers implied by the widening HOBO spread contributed to the reversal in vegetable oil futures…
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...