The soy complex, in particular soybean oil, took strength off rallying crude oil prices last week, with spot soybean oil futures settling over 81 cents per pound yesterday and today, a 2.3-cent per pound rally on the week.
S&D and fundamental factors
Reports from Ukraine (the Ukrainian Club of Agrarian Business) are that planting of spring crops is coming to an end. Despite the war, area planted was still quite impressive with 12.64 million total hectares or about 70 percent of the total area of last year. Sunflower plantings were well off a year ago, however, with 4.3 million hectares planted, down 34 percent vs. 2021. Fertilizer availability and cost will likely contribute to lower yields for the crops in Ukraine.
About 908 million pounds of soybean oil were used to make biofuels in March, the second highest monthly total on record and indicative of very strong biodiesel and renewable diesel demand. USDA reported crude soybean oil stocks dipped to 2.02 billion pounds by the end of April, but this level was up 11 percent vs. last year.
Weather, macro indicators, and news
The EU plans to ban almost all Russian oil by the end of 2022 (except for Hungary, Slovakia, and the Czech Republic). Crude oil rallied to near $125 per barrel last Monday on the spot market before settling down later in the week to between $115 and $118 per barrel.
Posted by: Information Services Our Information Services team assists our clients with understanding commodity and ingredient market dynamics. Using our extensive database of intelligence, we also produce regular commodity and commercial market publications covering supply and demand fundamentals, news alerts on events that shape the markets, and resource guides to give you a complete picture of the industries we monitor.