September 11 Weekly Update

9/11 – On 8/22, the Commerce Dept said it would impose countervailing duties, in the range of 50-68%, on Argentine and Indonesian biodiesel imports – effectively pricing them out of the U.S. market. As a result, increased demand for domestic biodiesel feedstocks – soy-oil, canola & corn oil – will put upward pressure on U.S. and Canadian veg-oil prices. In Aug, the USDA lower expectations for 2017/18 soybean crush, which will subsequently reduce production of soymeal’s by-product – soy-oil. The USDA said that reductions in (soy-oil) beginning stocks and in soy-oil production are seen tightening 2017/18 season-ending stocks. In global markets, steadily increasing needs from India and China will put a dent in in 2017/18 world veg-oil supplies. Soy-oil futures have jumped from $.3152/lb on 6/26 to $.3459 (9/8). 2018 forward futures contracts are averaging $.3537.