US soybean oil futures recovered after falling earlier in the week, while premiums for crude degummed soybean oil against the futures basis were mixed.
The July Chicago Board of Trade (CBOT) soybean oil contract on 23 June settled higher at 62.13¢/lb, amid hot and dry weather concerns.
The July contract settled down by the 3.5¢/lb trade limit on 16 June and by the extended 5.5¢/lb trade limit on 17 June, following a record-high set on 8 June at 72.08¢/lb.
After the 5.5¢/lb decrease, soybean oil futures reversed course and settled higher for the rest of the week. Activity this morning was showing downward movement in the futures basis, due to heavy rains and cooler temperatures in the forecast.
Differentials for crude degummed soybean oil, a feedstock for renewable diesel and biodiesel, were mixed in response to the volatility in the futures basis.
The premium for crude degummed soybean oil in the Carolinas delivered market against the July CBOT decreased by 1.5¢/lb over the week to last stand at +7.5¢/lb. In the Iowa fob market, the differential premium increased by 1¢/lb, while other markets were unchanged.
US soybean planting progress was at 97pc complete as of 20 June, up from 94pc from the previous week, according to the US Department of Agriculture (USDA). This is above the five-year average for this time of 94pc complete.
Growers in Indiana, Iowa, Michigan, North Dakota, Ohio, South Dakota and Wisconsin reached 100pc planting progress this week, joining Minnesota and Nebraska who reached it previously.
Soybean emergence was at 91pc as of 20 June, up from the 85pc five-year average for this time. As of 20 June, 5pc of planted soybeans were blooming, which is in line with the five-year average. The soybean crop conditions were little changed from the week ending 13 June.
USDA's Acreage report is due next week, which will release the details on planted soybeans against the 87.6mn acres forecast in the Prospective Plantings report from March.
