Hedgepoint updates palm oil and soybean market scenarios in the United States

Published 2024년 12월 9일

Tridge summary

The United States has exported more soybean oil than expected, leading to low stocks and the widest spread to palm oil in 40 years. Indonesia plans to increase its biodiesel blend from 35% to 40% by 2025, boosting palm oil consumption and emission reduction. Heavy rains and flooding in Malaysia are affecting palm oil production. Despite the bearish trend in the soybean complex, driven by the strong dollar and fears of new US tariffs on China, the impact on prices was limited.

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

Original content

The United States has exported 397,000 tonnes of soybean oil so far, exceeding the 272,000 tonnes forecast by WASDE, reducing stocks to their lowest level since 2012/13. “A record 5.87 million tonnes crushed was recorded in October (up 7.1% from 2022), with high numbers expected in November and December. Soybean oil is trading at its widest spread to palm oil, boosting the spot market and encouraging sales,” says Ignacio Espinola, senior grains analyst at Hedgepoint Global Markets. Indonesia and B40 Biodiesel As of January 1, 2025, Indonesia plans to increase its biodiesel blend from 35% to 40%, increasing palm oil consumption from 11 million to 13.9 million tonnes per year. The export tax on crude palm oil (CPO) was raised from USD 124/Mt to USD 178/Mt, supporting prices. The increase for the B40 blend will allow the country to reduce carbon dioxide emissions by approximately 40 million metric tons. “Currently, Indonesia consumes 11 million tons of palm oil for the B35 program, ...

Source: NoticiasAgricolas