# The good oil on grain prices… - Grain Central

> Nidera Australia's commentary links OPEC's pledge to cut output by 1.2 million bpd to 32.5 million bpd from January to higher crude prices, with oil up about 16 percent since the decision. It notes a planned non-OPEC cut of 600,000 bpd and that around 20 percent of the global corn crop goes to biofuels. The author argues that higher diesel costs and biofuel demand link crude to grain prices.

- Date: 2016-12-05 · published 2016-12-05T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/73542-the-good-oil-on-grain-prices-grain-central
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md), [Corn](https://feedsoft.ai/c/CORN.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Higher crude lifts biofuel economics and makes corn, soybean oil and palm oil more attractive for energy use, while raising diesel and freight costs for farmers and feed mills.

## Read by commodity

- SBO: bullish ▲
- WTI: bullish ▲
- CORN: bullish ▲
- BRENT: bullish ▲
- DIESEL: bullish ▲
- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2024-12-24 | [Oil prices up on US growth data](https://feedsoft.ai/events/27128-oil-prices-up-on-us-growth-data.md) | +4.0% | +7.9% |
| WTI | 2024-01-26 | [Crude oil prices today: WTI, Brent on pace for weekly gain](https://feedsoft.ai/events/32275-crude-oil-prices-today-wti-brent-on-pace-for-weekly-gain.md) | -4.6% | -0.6% |
| WTI | 2026-04-30 | [Ringgit closes lower on volatile oil prices \| The Star](https://feedsoft.ai/events/19961-ringgit-closes-lower-on-volatile-oil-prices-the-star.md) | -10.8% | -16.4% |
| WTI | 2017-01-09 | [Oil Prices: What to Make of the Volatility](https://feedsoft.ai/events/73142-oil-prices-what-to-make-of-the-volatility.md) | -3.0% | -1.8% |
| WTI | 2017-04-12 | [Syria, OPEC, and Oil Prices](https://feedsoft.ai/events/71674-syria-opec-and-oil-prices.md) | -5.5% | -11.4% |
| BRENT | 2024-12-24 | [Oil prices up on US growth data](https://feedsoft.ai/events/27128-oil-prices-up-on-us-growth-data.md) | +3.1% | +9.8% |
| BRENT | 2024-01-26 | [Crude oil prices today: WTI, Brent on pace for weekly gain](https://feedsoft.ai/events/32275-crude-oil-prices-today-wti-brent-on-pace-for-weekly-gain.md) | -2.4% | +2.9% |
| BRENT | 2017-01-09 | [Oil Prices: What to Make of the Volatility](https://feedsoft.ai/events/73142-oil-prices-what-to-make-of-the-volatility.md) | -2.8% | -0.2% |

## Sources

- graincentral.com: https://www.graincentral.com/news/the-good-oil-on-grain-prices/

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