The nearby US soybean oil cash market is still extremely short on supply, and basis indications and prices for crude-degummed and refined, bleached and deodorized (RBD) soybean oil remain inverted through year’s end, market sources said.

“A lot of suppliers remain extremely tight ahead of the new crop. As we get into the fourth quarter, soybean oil values are under an extreme amount of pressure,” a market source said.

Soyoil basis indications for the first quarter of 2025 are a “wild card,” according to sources, due to the perception that domestic consumption of the feedstock from the biofuels sector could be lower than originally expected.

Soybean oil is the most widely used feedstock in the production of biomass-based diesel and renewable diesel. But in the last several months, some biofuels producers shifted toward cheaper feedstock alternatives.

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