Cash basis on canola oil continued to rise this week, bumping up 2.5 cents to 19 cents over nearby soybean oil futures. Los Angeles canola oil prices rebounded back to around 70 cents per pound. Values fell below that threshold in May, to levels not seen in more than two years, as soy oil futures markets collapsed.

In the last few weeks, LA canola oil basis has been gradually moving higher due to rising U.S. vegetable oil demand, as well as concerns about delayed canola seed planting in Canada. Although basis on refined, bleached and deodorized (RBD) soybean oil in central Illinois has also been firmer in that time, the spread between the two widened this week to 3.75 cents. Since mid-April, the spread ranged between two cents and three cents. The spread between RBD bean oil and canola oil narrowed sharply in the late fall of 2022 just before the U.S. EPA approved canola oil as a renewable pathway under the RFS in December of that year. 

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