US soybean oil basis indications moved down over the week to Tuesday September 10, with demand very “spotty,” at least through the end of September, according to market sources.

The cash basis for soybean oil, crude-degummed, fob central Illinois dropped to a premium of 50-125 basis points per lb to the October soy oil futures contract on the Chicago Mercantile Exchange on Tuesday. This was down from a premium of 125-175 basis points per lb on Monday.

“There doesn’t seem to be much trading nearby, as most end users are covered and processors are getting ready for the new crop,” one trading source said.

On Tuesday, Fastmarkets assessed soybean oil, basis, crude-degummed, US Gulf at a premium of 400-450 basis points per lb to the underlying soyoil futures contract, compared with a premium of 450-500 basis points per lb previously.

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