November soybean oil stocks rose despite production dip
NOPA members’ average soybean oil yield fell to 11.53 pounds per bushel in November, the lowest yield since 2017/18. Soybean oil production, at 1.90 billion pounds, was down 6 percent from October and down 2 percent from November 2018.
Despite the decline in soybean oil production, oil stocks rose 2 percent month over month, to 1.45 billion pounds. The monthly net change in stocks volume, however, was just an additional 25 million pounds, indicating a close match between production and use in November. For the last four years, November soybean oil stocks have been between 1.3 and 1.5 billion pounds.
December’s rise in soybean oil futures was a sudden turn around from previous recent trade, with the Jan-20 contract gaining almost 4 cents between Dec. 3 and Dec. 17. Bollinger Bands may be signaling a near-term period of volatility, and soybean oil futures have lately encountered resistance around 34 cents.
Monthly soybean oil stocks by season
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