Basis levels on crude-degummed (DC) and refined, blended and deodorized (RBD) soybean oil in central Illinois and the Gulf remain depressed, market participants said. Supply is very abundant and demand, particularly from the biofuels sector, is still subdued. Indications for CD soybean oil in Illinois and the Gulf have narrowed and are close to parity. Some distressed RBD soybean product has been reported at levels below those listed in the pricing guide.

Very little actual trading has been taking place in the cash markets for the last several weeks. At the end of 2023, several larger buyers covered their positions through the first quarter of 2024 and into the second quarter. 

“It seems like there is plenty of feedstock around in Q1 and leaking into Q2. Margins have compressed significantly,” said one market source. He added that very few people are interested in selling into Q3 based on recent soybean meal values.  

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