CHICAGO: Soybean Oil were trade at $13.8 per bushel in mid-October, hovering close to the two-month low of $13.6 hit on October 6 as fast progress in the US harvest signaled a strong supply to replenish inventories. Commodity investors also continued to digest data from the USDA’s World Supply and Demand Estimate report.
Increased output from major producers Brazil and Argentina heightened export competition for US farms, pressuring projections of US exports of soybean oil trade to be downwardly revised by 40 million bushels for the 2022/23 marketing year. On the other hand, expectations that imports from top consumer China will remain robust limited the downturn in prices.
Palm oil increased to a 6-week high of 3945 Riggint / Tonne , buoyed by a weak ringgit and concerns over supply disruption as Russia threatened to pull out of an agreement on Black Sea grain exports.
Expectations of a drop in Southeast Asian palm oil production and supply from November to February due to potential La Nina weather disruption also supported prices.
Meanwhile, exports of Malaysian palm oil products for October 1-15 fell 4% from the same period in September, according to cargo surveyor Intertek Testing Services (ITS) Saturday.
While benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange rose 0.31% to close at 3,878 ringgit per tonne, after declining as much as 2.33% earlier in the day. It had gained 4.6% on Friday.