Spot vegetable oil trading remained subdued and basis indications were still under pressure on Wednesday in thin post-holiday activity. In the Gulf, there was an option on crude-degummed soybean oil bid late on Tuesday. Bids were heard as low as 2 cents below CME March soybean oil futures today, with offers at 2 cents above the contract. Basis on refined, bleached, and deodorized soybean oil (RBD) soybean oil in central Illinois was around 9.5 cents above March SBO futures.

Edible oils consumption from the energy and food sectors has waned in the last few months due to a combination of factors. At the end of 2023, several larger buyers covered their positions through some, or all of the first quarter of 2024, and are not expected to add coverage until the second quarter. In addition, depressed D4 Renewable Identification Numbers (RINs) prices helped to keep renewable diesel (RD) margins in the red at the end of 2023. 

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