Soy Oil Sets New High After Drop in USDA’s Ending Stocks

Vegetable oil futures continued to move higher on Tuesday. While the United States Department of Agriculture’s (USDA’s) World Agricultural Supply and Demand Estimates (WASDE) provided few changes, reductions in its predictions of 2020/21 U.S. soybean and soybean oil ending stocks continued the bullish fundamental backdrop. A 100-million-gallon addition to USDA’s forecast of 2020/21 U.S. biodiesel use raised its forecast from 8.1 billion to 8.2 billion pounds, almost 500 million below The Jacobsen’s expectation of 8.69 billion. The increase reduced USDA’s ending stocks prediction to 1.71 billion pounds, nearly 200 million pounds above The Jacobsen’s 1.52-billion-pound projection.

Soybean futures ended the day slightly below where they were trading just ahead of the WASDE report. However,…