Mumbai, May 04 (Commoditiescontrol): According to the latest Fats and Oils report, soybean oil prices have tumbled to their lowest level since early 2021. The primary factor is a decline in soybean oil's share in renewable diesel production following a surge in the sector.
Adding to downward pressure, energy prices remain subdued, with U.S. crude oil trading below $80 per barrel. This undercuts margins within the renewable energy sector, further weakening soybean oil demand.
Market analysts also cite ample U.S. soybean oil ending stocks as a reason for bearish price projections.
While soybean oil prices face challenges, soybean farmers may find some relief. Persistent wet weather in the Corn Belt is likely to delay planting progress, potentially curtailing soybean supplies later in the year. Moreover, severe rainfall and flooding in Brazil's Rio Grande do Sul—the last Brazilian province to harvest soybeans—threaten significant crop losses. Approximately 25% of the crop awaits harvest, and this disruption could tighten global soybean supplies, offering some price support.
(By Commoditiescontrol Bureau; +91-9820130172)
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