Palm and soybean oil: Updates and insights from the global markets

Soybean oil exports from the United States reached 397,000 tons, exceeding the 272,000 tons forecast by the WASDE report. This performance resulted in a reduction in stocks to the lowest level since the 2012/13 harvest. According to Ignacio Espinola, senior analyst at Hedgepoint Global Markets, a record volume of soybean crushing was recorded in October, totaling 5.87 million tons — a growth of 7.1% compared to the same period in 2022. Espinola also highlighted the increase in the spread between the prices of soybean oil and palm oil, which favored sales in the spot market. As of January 2025, Indonesia plans to increase the biodiesel blend from 35% to 40%, increasing palm oil consumption from 11 million to 13.9 million tons per year. This measure is expected to reduce carbon dioxide emissions by 40 million metric tons. In addition, the Indonesian government raised the export tax on crude palm oil (CPO) from USD 124/Mt to USD 178/Mt, positively impacting the product's prices on ...