Soybean Oil Spreads Continue Rally on Robust Domestic Use

Soybean oil prices were narrowly mixed on Tuesday as the bullish data released by the National Oilseed Producers Association (NOPA) on Monday continued to support spreads. Palm oil prices were also narrowly mixed, but the spreads tightened on concerns about slowing demand for exports in November. The January 2021/January 2022 soybean oil spread gained 14 basis points to settle at 2 3/4 cents on Tuesday, a life-of-contract high. The spread has rallied nearly two cents in November on a continuation of robust domestic demand. A shortage of alternative feedstocks has driven record demand from biodiesel producers, which has not substantially impacted non-biofuel demand despite a sharp increase in basis levels. The NOPA data suggested domestic demand rose above two billion pounds for the fourth time in the last five months. Combined with The Jacobsen’s…