Benchmark soybean oil futures rallied by more than 6% in the session on Friday January 10, propelling the March contract to its highest settlement in two months.

March soybean oil futures ended at $0.4558 per lb on Friday, increasing by $0.0282 per lb or 6.6% from the previous day’s close of $0.4216 per lb.

Soybean oil futures prices were higher for much of the week, amid a weaker US dollar index, a weather-related rally in energy prices, indications of a stronger US economy, expectations for short-term guidance on the 45Z tax credit and position squaring ahead of the release of the USDA’s monthly supply and demand figures on Friday.

In the latest World Agricultural Supply and Demand Estimates (WASDE) report, the USDA — for a second month in a row — raised its 2024/25 forecasts for US soybean oil production and exports.

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