W34: Soybean Oil Update

In W34 in the soybean oil landscape, on Wednesday, August 23, soybean oil futures for Dec-23 delivery increased by 1.89% to USD 62.97 per pound (lb) following two consecutive downward sessions driven by upcoming weather forecasts. On Friday, August 25, the futures closed higher again at 1.9% to USD 63.36 per lb. The market continues to be concerned about the final stages of the American crop due to challenging weather conditions. Dry and hot weather may reduce productivity in United States (US) soybean and corn fields, contributing to market volatility. While weather forecasts predict better rainfall ahead, the situation remains uncertain until clearer numbers for the 2023/24 season emerge.

In the US, soy oil sales for the 2022/23 period amounted to 1,800 metric tons (mt), with Mexico being the largest buyer. In Jul-23, China's soybean oil imports decreased by 32.2% YoY to 40 thousand metric tons (mt), with a corresponding 48.6% YoY drop in value to USD 29.08 million. However, from Jan-23 to Jul-23, soybean oil imports increased by 18.5%, reaching a total of 220 thousand mt.