Soybean Oil
- CME soybean oil futures were higher through Wednesday, compared to Wednesday of the prior week. They have risen 26% since late December, reaching their highest level since September 2023
- The significant increase in soybean oil futures over the last two months indicates growing confidence in the industry that demand will grow significantly, once the EPA releases the details of the 2026/2027 biofuels program, according to analysts
- According to Reuters, China may be less likely to follow through on another big purchase of U.S. soybeans that President Donald Trump has been touting for several weeks in the wake of the Supreme Court striking down Trump's sweeping tariffs
- According to Reuters, U.S. President Donald Trump moved swiftly on Friday to replace tariffs struck down by the Supreme Court with a temporary 10% global import duty for 150 days and ordered new investigations under other laws that could allow him to re-impose the tariffs
- Energy prices held mostly firm this week, providing ongoing tailwinds for the soybean oil market, due to improved renewable diesel margins, according to analysts
- The USDA’s next round of supply and demand numbers is scheduled to be released on March 10
Canola
- The Intercontinental Exchange spot canola seed futures were higher this week, continuing to follow the lead of the soybean complex
- Agriculture and Agri-Food Canada reported that Canada’s canola stocks in December were higher year-over-year; exportable supplies from Australia are easing; and acreage growth in Canada is expected to be limited, while ending stocks are projected to fall by nearly 1 million metric tons from 2026 to 2027
- Canola oil basis offers through Q3 remained steady this week, as reported by cash dealers
Palm Oil
- Palm oil prices on the Kuala Lumpur Commodity Exchange moved higher late this week, following the lead of the soybean oil market
- Cash palm oil is trading at a significant discount to soybean oil in the global cash markets
- According to Business Recorder, exports of Malaysian palm oil products for February 1-20 were estimated to have fallen between 8.9% and 12.6% from a month earlier, according to data from cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia
- According to Business Recorder, the Malaysian Palm Oil Council said on Tuesday that crude palm oil prices are expected to range between 4,000 ringgit and 4,300 ringgit ($1,026-$1,103) per metric ton in March, as tightening supply, improving demand from top buyer India, and firm U.S. soybean oil prices will support palm oil prices
Mayo & Margarine
- The CME soybean oil market, palm oil prices on the Kuala Lumpur Commodity Exchange, and the USDA butter market were all higher this week
Commodity Trends at Your Fingertips: Dive into the Farmer's Report
The data contained in the Farmer’s Report is provided for informational purposes only, is not tailored to your specific purchasing needs, and is not intended as a substitute for any other publicly-available market data or information. The Farmer’s Report is compiled from the last-received market data provided by the United States Department of Agriculture (USDA) and/or other market sources, and is subject to change without notice. Nothing herein is the opinion of US Foods®. US Foods neither assumes any legal liability nor makes any warranty or guaranty, either express or implied, regarding the completeness, accuracy or usefulness of this information.