The evolving concept of a clean label keeps snack and bakery formulators on their toes.
Choosing the optimal fat is key to developing a delicious doughnut. Options include shortenings that help keep the doughnut from drying out too quickly, improve the mouthfeel, and produce stable icings.
A new FDA qualified health claim states that oils high in oleic acid, such as high oleic soybean oil, may reduce the risk of coronary heart disease.
As the trade dispute with China accelerates, and a very good and slightly early 2018 soybean crop has become virtually assured, both soybeans and crude soybean oil futures…
To some extent, soybean oil is a residual commodity, secondary to soybean meal, in driving processing rates and influencing complex prices. Crush rates are driven primarily…
On April 4, 2018, soybean futures quotes suffered a highly volatile day upon China’s announcement of import tariffs on U.S. soybeans. Soybean futures dropped…
In late October, the U.S. Environmental Protection Agency’s (EPA) decided not to move forward with reducing the biomass-based diesel and advanced biofuel requirements…
Global approval will advance the growth of U.S.-grown high oleic soybeans, leading to an ample supply for the food industry.
The October 2017 update focused on the Environmental Protection Agency’s (EPA) notification of reducing the biomass-based diesel and on the advanced biofuel volume…
The latest projection released by the United States Department of Agriculture (USDA) promises a plentiful supply of soybeans through 2018 and projections show…
Food manufacturers can promote eligible soybean oil products as U.S. grown and now, heart healthy.
The Chinese Ministry of Agriculture recently granted approval for the import and food and feed use of Monsanto’s MON 87705 soybean, farmers will have access to this…
A new AHA Presidential Advisory reviews and examines the scientific evidence supporting this longstanding recommendation to decrease saturated fat intake, and increase polyunsaturated and monounsaturated fat intake to…
While the mechanism behind the ability of soy protein to lower cholesterol levels in humans remains elusive, it has been observed that soyfoods can help to lower cholesterol levels by replacing…
High oleic soybean oil and shortening is now available to food companies.
High oleic soybean oils set to hit the marketplace in a big way.
Keep up-to-date with the latest QUALISOY and U.S. Soy news.
Richard Galloway
To some extent, soybean oil is a residual commodity, secondary to soybean meal, in driving processing rates and influencing complex prices. Crush rates are driven primarily by immediate soybean meal demand, and soybean oil inventories at crushing plants vary based on the balance of demand between soybean oil and soybean meal at any given time.
Roughly half the soybeans grown in the U.S. are exported as whole beans. On average, China buys half of the total soybeans exported from the U.S.1 The balance between the demand for exported soybeans and soybean meal greatly impacts the crushing margin, which in turn, impacts the crush rate and production of soybean oil. The production rate impacts the buildup or draw down of soybean oil stocks and subsequently, the price of soybean oil.
The trade war involving soybean exports from the U.S. to China has a dual impact on the price prospects for soybean oil. Since the escalation of the trade war, the price for soybeans has dropped approximately 20 percent, the price for soybean oil futures has dropped 10 percent and the crushing margin has widened by about 15 percent.2 While part of this decline in soybean price can be attributed to the excellent condition of the current U.S. crop, the trade war is certainly the primary driver.
The USDA reports issued on July 12 showed an undeniable influence of the trade war on the projections for marketing year 2018-19, with the following major highlights:
Soybean oil stocks are now forecast to grow from 1.71 billion pounds in December 2017 to 2.32 billion pounds this September, and remain somewhat heavy at 2.24 billion pounds the following September. As a result, USDA projects crude soybean oil to cost $0.2950-0.3350 this year and $0.2800-0.3200 next year.3 This implies soybean oil will be delivered to the East Coast and Midwest at less than 35 cents per pound this summer, and another one to two cents lower the following marketing year.
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Refined soybean oil prices chart a separate course from crude soybean oil futures
Price Volatility Returns To The Soybean Complex
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