Cash basis on crude-degummed soybean oil in central Illinois moved down again on Thursday. Soybean oil sellers have been lowering offers in an attempt to compete with lower-priced animal fats and low carbon intensity oil prices. Spot crude-degummed soybean oil basis in central Illinois dropped to four cents below the May bean oil futures contract in Chicago. This was down from two cents to three cents below the futures contract previously. Basis offers on crude-degummed soybean oil at the Gulf were heard at parity to May futures.

Soybean oil supply has been ample and demand from the biofuel sector has been diminished due to a combination of market factors, including the increased competition from other fats and oils, weak renewable identification number (RIN) prices and tight margins. It has been speculated that a large Midwest renewable diesel production plant that has been down since the fall of 2023 will not return until the end of April.  

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