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Analyst expects a rally for soybean oil

A global market analyst is expecting better prices for soybean oil soon.  Dan Basse with AgResource Company tells Brownfield soybean oil prices have likely bottomed out. “We kind of think that the oil or vegetable oil markets are making some important bottoms, both canola in Canada, soybean oil in the United States, and we’ll see a rally that starts after the stocks and seedings report that will probably take us to the end of the year.”

Basse says he’s expecting significantly higher prices for soybeans and soybean products. “Today, you think about soybeans, soybean meal, soybean oil. Altogether, it’s a flat price environment and we believe that the soybean market needs to go back above $16.00 sometime in the future just to make sure we have enough going into new crops globally.”

He says renewable diesel has pulled most soybean oil supplies out of the export market and soybean oil prices will likely climb to between $0.75 and $0.80 per pound.