Oilseed Prices Soar as US Soybean Oil Demand Surges
The price of oilseed rose following a surge in US soybean oil prices due to increased demand for biofuels and rising oil prices. November Brent crude futures reached a 1.5-month high of $94.8/barrel after increasing by 9% for the week, driven by renewed tensions between the US and Iran.
The EPA's decision to grant exemptions for small refineries (SREs) and reallocate biofuel credits removed uncertainty from biofuel demand, further supporting prices for vegetable oils and oilseeds. Soybean processing in the US rose 1.9% in July compared to June, while soybean oil stocks decreased by 6.4%, indicating active demand.
Palm oil futures on Bursa Malaysia increased 0.5% to $1,231/t, supported by rising oil prices and strong demand from importers. However, palm harvest forecasts indicate a decrease in global exports for the upcoming season, leading to higher February and March palm oil futures.