US soybean oil sales and exports continued at a robust pace in December, but shipments could be trimmed in the coming weeks since basis levels in South America have become more competitive to those in the US.

The latest USDA data for the week to December 19, published on Friday December 27, showed that 2024/25 domestic soybean oil sales were up sharply to 40,400 tonnes, while soyoil exports were also higher, at 29,200 tonnes. The figures compared with 6,000 tonnes of sales and 13,000 tonnes of exports the week prior.

US soybean oil export demand swung sharply higher in the final quarter of 2024. For the first time since 2022, Argentina’s soybean oil basis premiums moved above premiums in the US at several points since the start of October. 

This shifted demand to the US export market, making it a more cost-effective option for foreign buyers, since basis levels and futures prices for soybean oil crumbled. 

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