# Is Crude Oil Taking Cue from Vegetable Oils?

> A CME Group analysis argues that soybean oil prices have recently moved ahead of crude oil, because the smaller vegetable oil market reacts sensitively to crude supply and demand shifts. Biofuel mandates in 64 countries link the two markets through refiner purchasing.

- Date: 2017-03-08 · published 2017-03-08T12:00:00.000Z
- Category: market · region Global · magnitude low
- Page: https://feedsoft.ai/events/72089-is-crude-oil-taking-cue-from-vegetable-oils
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

The linkage means crude oil moves can signal and transmit into vegetable oil prices through biofuel buying. Buyers tracking oilseed meal and oil costs should watch crude as a leading indicator.

## Read by commodity

- SBO: neutral
- WTI: neutral
- PALMOIL: neutral

## Sources

- cmegroup.com: https://www.cmegroup.com/education/featured-reports/crude-oil-talking-lead-from-vegetable-oils

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