In W29 in the soybean oil landscape, soybean oil futures on the Chicago stock exchange experienced fluctuations throughout the week. On Monday, July 17, soybean oil futures for August delivery closed down 0.45% or USD 0.29/lb to USD 64.76, a drop of 0.7% week-on-week (WoW), but an increase of 10.6% month-on-month (MoM). On Tuesday, July 18, soybean oil futures closed down 1.10% or USD 0.71/lb to USD 64.05. However, on Wednesday, July 19, the soybean oil contract for August closed up 3.12% or USD 2.00/lb to USD 66.05, influenced by the end of the Black Sea grain export agreement and Russian attacks on Ukraine's port infrastructure in the region. Meanwhile, on Thursday, July 20, soybean oil prices rose 1.59% to USD 67.64.
Brazil broke the 18-year record for soybean oil exports in the first half of 2023, exporting just under 1.47 million metric tons (mmt) of soybean oil. This is the highest volume of soybean oil shipped, surpassing the previous record set in the second half of 2005. The exported volume is equivalent to crushing approximately 7.73 mmt of soybeans. The demand for biodiesel contributed significantly to boosting the foreign market for soybean oil. Additionally, the Brazilian Association of Vegetable Oil Industries (ABIOVE) has updated projections for the 2023 harvest and monthly statistics for the soy complex up to May. Soybean oil production in 2023 is expected to grow by 100 thousand metric tons (mt) to 10.8 mmt, while soybean oil exports are forecast to increase from 2.3 mmt to 2.4 mmt.
In India, the import of vegetable oils increased by 24% MoM in June to 1.3 mmt, including soybean oil by 37% to 437.66 thousand mt. In the United States (US), soybean oil inventories in June were reported by the National Oilseed Processors Association (NOPA) at 1.69 billion pounds, 4% lower year-on-year (YoY) and testing a seven-month low. Volume was also below market expectations of 1.816 billion pounds. China imported 50 thousand mt of soybean oil worth USD 44.24 million in June, an increase of 55% YoY in volume and 50.7% YoY in value. Between January to June, imports advanced by 40.2% to 180 thousand mt. Lastly, in Kazakhstan, vegetable oil production rose by almost 16% YoY in the first five months of 2023, with the East Kazakhstan region leading in oil production. Soybean oil production specifically increased by 2.7 times, reaching 13.2 thousand mt.
