US interior vegetable oil markets were fairly quiet on Tuesday May 7. Prices were firm to higher following another day of gains in soybean oil and palm oil futures markets. However, soybean oil basis indications were still under pressure, with nearby trading still stalled due to subdued demand from the renewable diesel sector.

Many buyers from that industry have covered their positions through the end of the second quarter, market sources said. Storage tanks at renewable diesel plants are brimming with soybean oil and other feedstocks, market sources added. 

New renewable diesel facilities have yet to come online as planned, and some producers have reduced run rates at their plants for a variety of reasons like weak margins and scheduled maintenance work.

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