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US soybean oil futures ended mixed on July 28, 2023, as the August and September contracts gave up early gains after reports that a renewable diesel producer was selling a large part of its position due to operational issues or poor margins. Revised forecasts for short-lived Midwest heat also weighed on the front end, while deferred contracts finished slightly higher on crude oil strength and Black Sea supply worries.
Forced liquidation by a large renewable diesel buyer removes demand support from soyoil futures, pressuring nearby prices. Deferred strength tied to crude and Black Sea risk limits the downside and keeps the curve supported.
fastmarkets.comAmanda LuhavaljaJul 31, 2023Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Late selling on July 28 tied to a renewable diesel producer liquidating a large position (operational issues or poor margins) and easing Midwest heat forecasts pressured nearby soyoil, a demand and sentiment shock consistent with the sharp drop into July 31.
