US soybean oil futures on the Chicago Mercantile Exchange closed higher on Friday August 9, with funds covering short positions before the USDA’s releases of its monthly World Agricultural Supply and Demand Estimates (WASDE) on Monday August 12.

The front-month September soybean oil futures contract settled at $0.4242 per lb on Friday, up by 25 basis points from a close of $0.4217 per lb the session prior.

Market participants believe the WASDE report could show a slight increase in 2024/25 soybean crop production, beginning stocks and ending stocks.

Soybean oil prices started to rebound at midweek after sinking in prior sessions. Most global equities and commodities tumbled on Monday August 5, with worries of a weaker US economy and a recession triggering widespread panic selling that sent soybean oil futures to fresh multi-year lows on the spot continuation chart.

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