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Soybean oil futures fell sharply from all-time highs set two weeks earlier but remain more than double year-ago levels. Cash soybean oil basis is at record strength as food and renewable diesel buyers compete for limited supply.
A study by Advanced Economic Solutions projects renewable diesel output to double to about 1.1 billion gallons in 2021.
Tight soybean oil supply from the food-versus-fuel competition is likely to keep vegetable oil prices elevated for 12 to 24 months. Higher oil prices also reduce the oil share of crush economics, which can pressure soybean meal values.
foodbusinessnews.netJay SjervenJun 23, 2021After 842 past bullish policy events, Soybean Oil moved a median +0.2% over 5 sessions (52% higher; middle half -1.6% to +2.1%), and -0.5% 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.
