US Interior and Gulf crude-degummed soybean oil basis levels were mostly steady on Tuesday February 4, in what several trading sources described as an ongoing sloppy market.

The basis on Central Illinois crude-degummed soybean oil was pegged at a 50-200 point discount FOB to the benchmark March soybean oil futures contract on the Chicago Mercantile Exchange.

Trade sources said that a recent decline in soyoil basis export premiums in Argentina should lead to a pullback in US shipments of the vegetable oil in the coming weeks and/or months, and this will impact domestic US prices.

“We have heard that South America’s new crop will apply more pressure to US prices, but we have not seen that yet. The market is a bit of a mess with these stop-and-go tariff talks,” a market trading source said.

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