Cash basis on Illinois crude-degummed (CD) and refined, blended, and deodorized (RBD) soybean oil firmed up this week. Robust domestic demand, as well as constrained supply following reports of tight/sold out capacity through the third quarter and beyond, supported bean oil basis levels once again, sources said. 

The spread between CD and RBD soybean oil in Illinois also climbed, reaching 13 cents, a multi-month high. RBD soybean oil is the preferred feedstock for many U.S. producers, particularly ones that do not have pre-treatment facilities located at their renewable diesel (RD) plants. RD demand is forecasted to double over the next two years.

Figure 1.

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