# South American soybean oil FOB basis drops to record low | S&P Global

> Soybean oil FOB basis in South America fell to record lows on June 30, with Paranaguá at minus 1,850 points and Up River at minus 1,800 points against CBOT August. Weak destination demand from India and China, which are pressured by cheaper sunflower and palm oil, drove the drop, and a recent CBOT futures surge pushed offers lower.

- Date: 2023-07-03 · published 2023-07-03T12:00:00.000Z
- Category: trade · region South America · magnitude medium
- Page: https://feedsoft.ai/events/35136-south-american-soybean-oil-fob-basis-drops-to-record-low-s-and-p-global
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Record-low physical premiums signal weak export demand for South American soyoil and make it harder to sell cargoes at the current futures level. Cheaper competing vegetable oils also cap soyoil's price, which is bearish for the soy complex.

## Read by commodity

- SBO: bearish ▼
- PALMOIL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2023-08-18 | [South American soybean oil FOB basis drops to all-time lows \| S&P Global](https://feedsoft.ai/events/34661-south-american-soybean-oil-fob-basis-drops-to-all-time-lows-s-and-p-global.md) | -2.6% | -8.8% |
| SBO | 2025-11-25 | [China exported a record amount of soybean oil in October](https://feedsoft.ai/events/22039-china-exported-a-record-amount-of-soybean-oil-in-october.md) | +4.6% | -2.1% |
| SBO | 2026-03-16 | [Soybean oil slides amid Trump threats to China, US biofuel credits at 1-mth low](https://feedsoft.ai/events/4710-soybean-oil-slides-amid-trump-threats-to-china-us-biofuel-credits-at-1-mth-low.md) | -5.7% | -6.4% |
| SBO | 2026-03-01 | [India traders 'washout' soybean oil shipments to lock in price rally gains](https://feedsoft.ai/events/20703-india-traders-washout-soybean-oil-shipments-to-lock-in-price-rally-gains.md) | +4.6% | -1.4% |
| SBO | 2023-05-01 | [Palm oil drops to one-month low on dwindling Malaysian exports](https://feedsoft.ai/events/4382-palm-oil-drops-to-one-month-low-on-dwindling-malaysian-exports.md) | -1.0% | -8.8% |
| PALMOIL | 2021-01-27 | [The sharp rise in prices of soybean oil will support prices for sunflower oil and sunflower](https://feedsoft.ai/events/49249-the-sharp-rise-in-prices-of-soybean-oil-will-support-prices-for-sunflower-oil.md) | -5.2% | +0.6% |
| PALMOIL | 2025-03-03 | [US Soybean Oil Exports to Remain Strong Into 2025-26](https://feedsoft.ai/events/11142-us-soybean-oil-exports-to-remain-strong-into-2025-26.md) | +0.0% | -2.3% |
| PALMOIL | 2021-06-16 | [World Bio Market Insights WTO to review EU’s palm oil ban](https://feedsoft.ai/events/46598-world-bio-market-insights-wto-to-review-eu-s-palm-oil-ban.md) | -2.5% | +4.1% |

## Sources

- spglobal.com: https://www.spglobal.com/energy/en/news-research/latest-news/agriculture/070323-south-american-soybean-oil-fob-basis-drops-to-record-low

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.