Soyoil Price Gap Widens as Argentina Harvest Hits Stride

The price of Argentine soybean oil has hit its lowest point in at least a decade relative to US supplies, as the country's harvest season reaches full stride and Washington boosts biofuel blending mandates.

According to Commodity3 data, the discount paid for Argentine soyoil fell to 24 cents per pound below global benchmark futures on the Chicago Board of Trade this week. This is the lowest level since 2016.

The increased demand for US soybean oil comes from the Trump administration's decision in March to implement bigger biofuel blending requirements, which will boost demand for soyoil and corn ethanol. As a result, soyoil futures have gained more than 50 percent this year.