By Joanna Levin
SOYA oil prices jumped to their highest point since early 1995 in the USA last week, thanks to a global shortage of vegetable oils. The Chicago May soya oil contract has now rallied $0.60 in a week to close at $29.14 on Monday (11 May).
The soyabean market, however, has had a roller-coaster ride in recent days. Last weeks rally – prompted by heavy rain in the eastern part of the mid-west – suggested that early soyabean seedings could be delayed. And logistical problems in South American ports appeared to be hampering exports from the southern hemisphere. As a result, the Chicago July soyabean contract gained 9.5¢ to close on Friday (8 May) at $6.575/bushel.
But the July contract dropped by 7.5¢ to $6.50/bushel on Monday in line with other grain prices and drier weather forecasts for the eastern corn belt.
Demand for beans is sluggish due to a slowdown in the crush rate for soya oil production. The latest weekly statistics show that the weekly crush was 28.48m bushels, down 1.1m bushels on the previous week.