Prompt soybean oil basis levels and prices continued to drop this week against a background of very light trading. In central Illinois, crude-degummed soybean oil indications eased to a range of 2.5 cents to three cents FOB below the May CME soybean oil futures contract. Bids were reported as low as four cents FOB below the benchmark futures contract by midday. Basis on crude-degummed soybean oil at the Gulf also stumbled, with the latest assessments at parity to 50 points above futures. 
 
Reports that Chevron Renewable Energy Group will shut two biodiesel production plants in the Midwest indefinitely (with a combined capacity of 50-million-gallons-per-year) due to poor margins continued to weigh on the market. Over the last year, vegetable oil prices have plunged with rising supply and diminished demand from the biofuels industry major contributing factors.  

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