US: A sharp increase in the price of soybean oil in Chicago supported the prices of other vegetable oils

Published 2024년 7월 3일

Tridge summary

Soybean and palm oil futures have seen a significant increase this week due to a rise in biodiesel production and higher oil prices. Soybean processing in the US increased by 7.9% in May, leading to a 6.8% rise in August soybean oil futures to their highest level since April. Meanwhile, September Brent oil futures also rose by 10% due to improving economic data in the US and potential conflict between Lebanon and Israel. Palm oil futures also increased by 6% due to a 15.4% cut in exports by Malaysia. However, the market is awaiting official data on production, exports, and stocks. Meanwhile, Russian oil production continues to increase, leading to a potential pressure on prices.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

August soybean oil futures on the Chicago Stock Exchange rose 6.8% this week to the highest level since April at $1,035/t on the back of increased use of soybean oil in US biodiesel production and rising oil prices. According to the USDA, in May the volume of soybean processing in the USA increased by 7.9% compared to April to 5.23 million tons. September Brent oil futures on the ICE Futures exchange in London rose by 10% to $86.3/barrel (+2.1% for the week) on the back of improving data on the economy in the US and a possible escalation between Lebanon and Israel during the month ), which is the maximum value since the end of April. The quotation supports the expected increase in demand for oil and fuel due to increased travel by Americans on Independence Day. In addition, the strengthening of Hurricane Beryl, which has been forming in the Atlantic since the beginning of the year, to the 5th category, may lead to a reduction in oil production in the United States. It should be ...

Source: Graintrade