As of the week ending February 6, crude-degummed (CD) and refined, bleached, and deodorized (RBD) soybean oil prices were still treading water near three-year lows due to subdued biofuel demand and abundant U.S. interior supply. In the last four weeks, soybean oil prices in central Illinois have fallen roughly 12 percent and five percent, respectively.

Basis has declined sharply in the last several weeks, as March soybean oil futures continued to break through various support levels after 50 cents per pound to breach 45.00 cents per pound last week. In addition to diminished demand from the biofuels sector, the month of December and January typically see lower usage from the food sector when compared to the other months of the year. Prices for both soybean oil grades have plunged more than 50 percent from their April 2022 highs.

The refining margin narrowed briefly but has moved back to the 10-cent level in the last few…