In step with weaker soybean oil futures this week, canola oil and cottonseed oil cash prices extended lower. Mississippi Valley cottonseed oil (PBSY) traded at 70 cents per pound, with values down about two cents per pound from the week prior. 
 
Basis on Los Angeles canola oil declined to 19 cents, with prices ending the week above 83 cents per pound, down about four percent on the month. In June, the canola oil market gradually moved higher amid robust U.S. vegetable oil demand, as well as concerns surrounding delayed canola seed planting in Canada. By the end of that month, basis was up more than five cents since April to 21 cents. Coupled with a rally in soybean oil futures, LA canola oil prices jumped above 90 cents per pound to their highest levels in 2023 after slipping to two-year lows in the spring.

Figure 1.