US oleochemicals rivet attention to soybeans

22 February 2008 17:39  [Source: ICIS news]

HOUSTON (ICIS news)--The US oleochemical market’s attention was focused on soybean and oilseeds as a result of record futures prices, glycerine traders said on Friday.

Chicago soybean and soybean oil futures prices jumped to fresh records on Thursday, amid speculation that China may increase imports to keep food inflation at bay, an industry source said.

Front-month March crude soybean oil futures on the Chicago Board of Trade settled on Thursday at 61.31 cents/lb ($1,351/tonne or €919/tonne), up almost 6 cents from the previous finish. Friday’s early trading was maintaining this level and drifting higher.

“Buyers are going to be disappointed if they expect lower prices in the second quarter,” one fatty alcohol supplier said this week.

“It’s not going to happen and it’s not going to happen because of the oils’ prices,” the source added.

Market sources said China is the world’s largest volume buyers of vegetable oils, with most of the oils destined for food uses.

US refined glycerine prices have risen almost 20 cents/lb from quarter-one of 2007, driven heavily by kosher glycerine shortages. February vegetable refined glycerine contract prices were assessed in an 80-95 cents/lb spread, according to global chemical market intelligence service ICIS pricing.

US fatty alcohol prices rose about 10 cents/lb between third-quarter 2007 and first-quarter 2008, with mid-cut detergent range alcohols assessed in a 77-90 cents/lb range in February by ICIS pricing.

Oleochemicals include fatty alcohols, fatty acids and glycerine, among other products. Each of the oleo segments uses natural oils and/or fats and greases as feedstocks.

Major oleochemical producers include Procter & Gamble, Cognis, Dial, and Uniqema, among others.

For more on olechemicals visit ICIS chemical intelligence

By: Judith Taylor
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly