Cash Vegetable Oil Trading Remains Thin

Cash Vegetable Oil Trading Remains Thin

The cash corn oil and cottonseed oil markets were quiet again this week, as light buying interest from the food sector and overall negative sentiment kept a lid on prices. 

Soybean oil basis levels and prices have been under pressure, due in part to lackluster demand from the renewable energy industry. Margins for renewable diesel producers (RD) have also been very compressed, with prices for renewable identification numbers (RINs) remaining below $1.00/per gallon.

U.S. soybean oil futures shot higher on Tuesday, along with the rest of the soybean futures complex and an early but fleeting rally in crude oil prices. December soybean oil futures ended up 121 basis points per pound, or 2.35 percent, at 52.75 cents per pound. 

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