Cash basis on Illinois and Gulf Coast crude-degummed soybean oil moved 50 basis points higher this week following a period of relative stability. Interior soybean oil supply has been tight and demand from the non-biofuel sector has been firm amid forecasts for lingering dry and hot weather across much of the Midwest Corn Belt. Cargill’s decision to suspend construction plans on a Mississippi soybean processing plant has also been contributing to the market’s bullishness.
The refining margin, or spread, between crude-degummed and refined, bleached, and deodorized (RBD) soybean oil in Illinois was pegged at about 12-12.5 cents, contracting from 13 cents last week. The recent strength in RBD basis has been linked to expectations for increased demand from the U.S. renewable diesel (RD) sector. RBD soybean oil is the preferred feedstock for many U.S. producers, particularly ones that do not have pre-treatment facilities on site at their RD…
01.14.2025
EIA raises US renewable diesel output forecast for 2024-25, lowers 2025 biodiesel production outlook
The US Energy Information Administration (EIA) raised its 2024 forecast for the production of renewable diesel (RD) in the US while maintaining its 2024 biodiesel output estimate in its...
01.14.2025
DCO tracks soybean oil prices higher; fats markets unchanged
Market activity for US animal fats and oils was relatively subdued on Tuesday January 14, though sources noted a bullish sentiment in the market.
01.14.2025
USDA raises 2024/25 forecast for GCAU count, lowers feed grain use estimate
Most US animal protein prices were flat to up day on day on Tuesday January 14. Animal protein products were slow to start the week, with light volumes traded,...