In the last few weeks, cash basis levels on US interior crude-degummed and refined, bleached and deodorized soybean oil have moved higher. In the process, the refining margin narrowed to 6.5 cents on Monday July 8 after mostly ranging between 8 cents and 10 cents since the fourth quarter of 2023. 

The advance in basis and outright prices follows improved margins and reports that Phillips 66’s massive Rodeo renewable fuel refinery in California has reached full capacity at 50,000 barrels per day. In addition, the August soybean oil futures contract, while taking a breather on Monday, has rallied toward $0.5000 per lb. 

On the Chicago Mercantile Exchange, August soy oil futures ended at $0.4909 per lb on Monday, down by 46 basis points, or 0.93%, from a close of $0.4955 per lb on Friday July 5.

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