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Rabobank analyst Owen Wagner said crude oil now strongly influences grain and oilseed prices through biofuel links, with soybean oil tracking WTI since 2006-07. Saudi Arabia and Russia are cutting petroleum output to lift prices, and Saudi Arabia reportedly needs about $85 per barrel to balance its budget.
Crude oil moves feed-related oilseed and vegetable oil prices through biofuel demand, so OPEC+ supply cuts support both crude and soybean oil prices.
producer.comSean PrattOct 27, 2023After 487 past bullish macro events, Crude Oil (WTI) moved a median +1.0% over 5 sessions (60% higher; middle half -2.0% to +4.0%), and +1.5% over 20.
After 28 past bullish macro events, Soybean Oil moved a median -1.2% over 5 sessions (32% higher; middle half -2.1% to +1.8%), and -2.3% over 20.
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.
