Cooking Oil
A first-ever unit train of soybean oil from Nebraska signals that new crush capacity is creating larger domestic markets for farmers’ soybeans.
USDA says growing soybean output and expanding biofuel demand are helping drive the increase.
March crush data showed stronger soybean and canola processing, but softer animal fat production.
Strong demand persists despite short-term price pressure.
Rising global supplies may cap soybean price strength, while sorghum prices hinge heavily on China’s export demand.
Strong crush margins — now at multi-year highs — are encouraging processors to expand production.
Policy clarity will determine the trajectory of soybean crush demand, but producers in Kansas have shown that expanding local crush capacity strengthens basis and marketing options.
Crush demand is supporting soybeans despite biofuel uncertainty.
India trade tensions may affect the U.S. export outlook.
Big oils-and-fats volumes can support crush demand, but fuel markets can quickly tighten supplies.