05.02.2024
UCO, heating oil spread widens
Yellow grease traded as low as 34 cents per lb delivered Carolinas on Thursday May 2, with additional volume heard at 36 cents per lb. Despite the decrease, offers...
During the past week, soybean oil prices increased relative to meal and soybean values, allowing soybean oil to capture a large percentage share of crush relative to meal. Soybean oil prices ended the week at 48.89 cents per pound, 2% higher than the week prior. Soybean and soybean meal prices closed one percent lower. This allowed soybean oil to capture 42.3% of the crush value at week’s end.
Over the past year soybean oil’s share of the crush has ranged between 33% and 47%. Since February soybean oil’s percentage share has mostly fluctuated between 40% and 42%. Should the biofuel industry begin to ramp higher, this could lead to increased soybean oil demand and lift the soybean oil share of the crush.
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