US soybean prices driving up bean oil

27 November 2007 18:41  [Source: ICIS news]

HOUSTON (ICIS news)--Rising soybean prices are driving up bean oil values, industry sources said on Tuesday.

Soybean prices on the Chicago Board of Trade (CBOT) last settled front-month January futures at $11.036/bushel, a 34-year high, according to traders. Market sources said the jump was founded upon high petroleum crude oil prices and speculation on the weak dollar.

Front-month January soybean futures were trading slightly down by noon on Tuesday, about 17 cents off Monday’s high mark.

With the bean prices at such levels, crude soybean oil futures were also hiked in CBOT trading. Front-month December futures were trading between 45 cents/lb and 46 cents/lb by noon on Tuesday 27 November.

The Monday CBOT crude soybean oil settlement was 46.69 cents/lb, which would put refined soybean oil prices over 51 cents/lb once the typical 4-5 cents/lb premium is added.

Soybeans, crude soybean oil, and refined soybean oil strongly affect downstream markets in the oleochemical segment and in biodiesel.

Many US biodiesel plants utilise refined soybean oil as feedstock, while in the oleochemical sector refined soybean oil is used to produce vegetable-based fatty acids, fatty alcohols, and glycerine.

By: Judith Taylor
+1 713 525 2653

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