June 13

6/13 - Soy-oil prices stabilized in May after Indonesia – the world’s top producer and exporter of palm oil - lifted its ban on palm oil exports. U.S. soybean oil futures hit a record high of $.9060/lb on 4/28, but have since backed off to $.8081 on Friday (6/10). Soy-oil averaged $.5815 in 2021, following a 6-year stretch (2015-2020) of averaging just $.3117/lb. In the U.S., renewable diesel initiatives are likely to keep veg-oil prices elevated for the foreseeable future. In Friday’s WASDE, the USDA said 12B pounds of soy-oil will go into biofuel production in 2022-23, accounting for 45.4% of all soybean oil produced in the U.S. That’s up from 10.7B lbs (40.8%) in 2021-22, and 8.8B lbs (35.4%) in 2020-21. Sky-high fuel prices mean that demand for renewable diesel will continue to support prices for soybeans and soy-oil, while also taking acres away from corn and wheat.