Soybean Oil Prices

Soybean Oil Prices June 2024

During the Q2 quarter of 2024, the soybean oil prices in the Ukraine reached 905 USD/MT in June. Additionally, the soybean oil market saw a steady climb in prices across second quarter in Ukraine, influenced by reduced soybean availability due to challenging climate circumstances affecting crop yields. High demand within local markets and increased transportation prices further amplified the upward price trend, maintaining a robust pricing environment.

In the Q2 2024, soybean oil prices in China reached 920/MT in June. The market experienced a notable increase in prices, primarily driven by strong demand from the food and biofuel industries and limited supplies due to disrupted harvests from adverse weather. The demand-supply mismatch, alongside rising global freight costs, led to significant price surges throughout the quarter.

Soybean Oil Prices December 2023

The soybean oil prices in the Netherlands experienced a significant decline in Q4 2023 reaching 951 USD/MT by December. Market saturation led to aggressive price cuts as traders attempted to clear excess stock. The situation was compounded by declining demand, especially from the biofuel sector, and general economic downturns that impacted consumer purchasing behavior. These factors collectively resulted in one of the steepest price drops in recent months, reflecting the broader challenges faced by the vegetable oil market in the region.

Regional Coverage

The report provides a detailed analysis of the soybean oil market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends, price forecast and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the soybean oil price trend. 

Global Soybean Oil Price

The report offers a holistic view of the global soybean oil pricing trends in the form of soybean oil price charts, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. This comprehensive analysis not only highlights the current price but also provides insights into soybean oil historical price trends, enabling stakeholders to understand past fluctuations and their underlying causes.

The report also delves into soybean oil price forecast models, projecting future price movements based on a variety of indicators such as expected changes in supply chain dynamics, anticipated policy shifts, and emerging market trends. By examining these factors, the report equips industry participants with the necessary tools to make informed strategic decisions, manage risks, and capitalize on market opportunities. Furthermore, it includes a detailed soybean oil demand analysis, breaking down regional variations and identifying key drivers specific to each geographic market, thus offering a nuanced understanding of the global pricing landscape.

Europe Soybean Oil Price

Q2 2024:

The market witnessed a consistent rise in prices over Q2 2024 in Europe, propelled by a decrease in regional stock levels and sustained demand from various industrial sectors. Additional pressures came from the Euro's depreciation and competitive pricing following other manufacturers like Latin America. Moreover, weather-related delays in other regions also tightened global supplies, enhancing pricing pressures. Furthermore, locally, ongoing strong purchasing patterns and higher transport costs fostered an optimistic market outlook despite challenges from geopolitical tensions affecting regional stability and trade flows.

Q1 2024:

The Q1 2024 market had a mixed quarter in Europe, particularly Ukraine. Prices initially dropped considerably, affected by the international downturn in soybean oil trading. Moreover, Ukrainian producers responded by curtailing exports to the EU and adjusting prices to stay competitive. The market faced further challenges from reduced demand within the biofuel sector and a weakening local currency, making imports pricier. Nevertheless, by the late quarter, the situation reversed with a surge in domestic requirements and easing border tensions, which helped revive prices. Increased demand from the biofuel and feed industries toward March end supported this positive shift, improving the market outlook.

Q4 2023:

In Europe, soybean oil prices consistently decreased throughout the fourth quarter of 2023, primarily due to reduced biofuel sector demand. Other factors contributing to this trend included geopolitical conflicts affecting soybean harvests and the availability of other vegetable oils, which increased competition. The market adjustments were also reflected in price movements within the Netherlands, where excess domestic inventory led to significant price reductions. The impact of decreased output and employment cuts across the sector further influenced market conditions, leading to a continued decline in soybean oil prices as the quarter concluded.

This analysis can be extended to include detailed soybean oil price information for a comprehensive list of countries.

North America Soybean Oil Price

Q2 2024:

There have been notable shifts in the market, especially evident during the 2024 second quarter. These changes reflect broader trends in major production areas, particularly in Latin America. The period saw significant fluctuations in prices, driven by a mix of supply constraints and increasing regional demand. Additionally, early in April, prices surged owing to low stock levels and increased local demand. Supply challenges persisted, with manufacturers striving to meet demand despite rising costs related to raw material shortages, notably feed soybeans.

Q1 2024:

The first quarter of 2024 in North America saw soybean oil prices experiencing considerable fluctuations. Additionally, the year began with an uptick in costs due to heightened regional demand combined with robust inventories that managed to meet this rising need. Prices initially aligned with global trends where key exporting nations saw similar increases, keeping the market competitive in January. This was further bolstered by ongoing demand from the food industry and other sectors. However, a sharp decline in prices marked the onset of February. This drop was largely influenced by strong global production forecasts and ample supply of other vegetable oils, which drove prices down. Furthermore, toward the end of quarter, prices mirrored recoveries in other markets, particularly Brazil, buoyed by reduced shipping costs and a stronger dollar, which made U.S. exports more appealing to buyers.

Q4 2023:

In Q4 2023, North America witnessed a decline in soybean oil prices due to an abundant supply and a dip in local demand, particularly from the biofuel industry. These trends were closely aligned with European market movements, where similar conditions prevailed. The considerable availability of soybean stock from September to November, which is the peak harvesting season, especially with Ukraine's substantial increase in the supply of soybean, played a crucial role in the price reductions. Additionally, a drop in the food price index exacerbated the downward pricing trend, influenced by low purchasing levels of key oils like palm and soybean. As the year closed, prices continued to wane, reflecting these compounded factors.

Specific soybean oil historical data within the United States and Canada can also be provided.

Middle East and Africa Soybean Oil Price

The report explores the soybean oil pricing trends in the Middle East and Africa, considering factors like regional industrial growth, the availability of natural resources, and geopolitical tensions that uniquely influence market prices.

In addition to region-wise data, information on soybean oil prices for countries can also be provided.

Asia Pacific Soybean Oil Price

Q2 2024:

Soybean oil prices in the Asia Pacific region, particularly in China, demonstrated a marked increase before tapering off toward the end of the second quarter of 2024. Influential factors included logistical disturbances due to the adversative climate in key agricultural zones, escalating production costs from higher prices for inputs such as labor and fertilizer, and growing requirements from industries like food and biofuel. These pressures, combined with surging global freight rates, pushed prices upward. In China, tight supplies paired with robust requirements from end users led to pronounced price volatility throughout the quarter.

Q1 2024:

During Q1 2024 period, the Asia Pacific soybean oil market navigated through a complex pricing landscape. Post-Lunar New Year, the demand in China dipped, pressuring prices downward amid a glut of domestic supplies and increased competition from other vegetable oils. Traders were hesitant to set new prices amid these challenging conditions, reflecting an observant stance due to fluctuating demand and supply dynamics and economic uncertainties, including currency devaluation. Despite these challenges, the market saw a rebound in March, spurred by increased biodiesel usage and a favorable currency exchange scenario, which encouraged more imports and helped prices recover toward the end of the quarter.

Q4 2023:

The Asia Pacific region experienced volatility in soybean oil pricing during Q4 2023. The market began with a decline, saw a mid-quarter rebound, and ended with a decrease in December. Factors affecting the market included diminished demand from the animal feed and biodiesel sectors and geopolitical concerns impacting supply chains. As November approached, a significant price recovery occurred, particularly in China, driven by robust downstream demand and speculative trading. However, this was short-lived as prices fell once again in December, influenced by global supply chain challenges and variable demand from major importers like China, reflecting the dynamic nature of the region's soybean oil market.

This soybean oil price analysis can be expanded to include a comprehensive list of countries within the region.

Latin America Soybean Oil Price

Q2 2024:

During Q2 2024, soybean oil prices in Latin America, especially Argentina, saw significant increases due to a combination of adverse weather, trade conflicts, and tight feedstock supplies. Harvest delays compounded by erratic weather affected crop yields and market dynamics. Argentina, alongside Brazil, faced intense global competition, influencing price trends. The enduring demand, especially from the biofuel sector, supported higher prices, with the region experiencing sustained upward pressure on soybean oil values due to these compounded factors.

Q1 2024:

The quarter was characterized by price volatility for soybean oil in Brazil Q1 2024. Additionally, prices increased in the middle of the quarter, despite a weak start to the year brought on by manufacturing delays and a decline in demand following the Lunar New Year. This resulted from a postponed planting season brought on by unfavorable weather, which threw off the agricultural calendar and caused shortages in supply. Price increases were also necessary to offset rising production costs due to rising global inflation. As a result, by the closing of the quarter, the dynamics of the market were significantly affected by the strong local requirements for biodiesel production and the reluctant selling practices that followed in anticipation of price spikes, even if commercial activity at ports had slowed.

Q4 2023:

The market in Latin America demonstrated notable fluctuations through the fourth quarter of 2023, particularly in Brazil where the market responded to varied influences. October saw a decline due to reduced global and domestic demand, which was briefly corrected in November amid renewed interest from the Asia Pacific region. However, December witnessed another downturn as supply levels remained high. The Brazilian real's appreciation and ongoing trade disruptions, especially from China, also affected the pricing landscape. The market's performance was indicative of the broader economic and environmental factors at play in Latin America's agricultural sector.

This comprehensive review can be extended to include specific countries within the region.

Soybean Oil Price Trend, Market Analysis, and News

IMARC’s newly published report, titled “Soybean oil Prices, Trend, Chart, Demand, Market Analysis, News, Historical and Forecast Data Report 2024 Edition,” offers an in-depth analysis of soybean oil pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot price of soybean oil at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of soybean oil price trend across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing soybean oil price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Soybean Oil Market Analysis

The global soybean oil industry size reached 61.2 Million Tons in 2023​. By 2032​, IMARC Group expects the market to reach 71.9 Million Tons, at a projected CAGR of 1.70% during 2023-2032.

• Consumers' growing concerns regarding obesity and heart disease have led to a move toward healthier cooking oils like soybean oil, thereby aiding in market expansion. According to the report from the World Health Organization (WHO), in 2022, 1 in every 8 people worldwide were living with obesity.
• Concurrently, the exponentially surging global population is directly linked to the mounting demand for food products like cooking oils, thereby boosting the use of soybean oil.
• Besides this, inflating disposable incomes has given consumers more purchasing power and enabled them to opt for healthier options like soybean oil, thus aiding in market expansion.
• Moreover, as per Our World in Data, almost 4 billion people, i.e., half of the global population, live in cities. This is especially evident in high-income regions like Western Europe, America, Australia, Japan, and the Middle East, where more than 80% of the population lives in cities. This rapid urbanization has led to a shift in eating habits, with a larger percentage of the population leaning toward soybean oil.
• In research by the Plant-Based Foods Association (PBFA), it was revealed that 70% of the total US population consumes plant-based foods. This changing consumers’ disposition toward plant-based diets and sustainable food choices is fueling the demand for soybean oil, which offers more ecologically viable production in comparison to animal-derived fats. In confluence with this, plant-based foods saw 60% household penetration in 2022 with an 80% repeat purchase rate across all categories, creating a promising outlook for market expansion.
• The extensive usage of soybean oil in an array of industrial applications like biodiesel production, lubricants, paints, and coatings is acting as another significant growth-inducing factor.
• In line with this, supportive government initiatives, subsidies along with mandates aimed at encouraging the use of biofuels are bolstering the demand for soybean oil as a feedstock for biodiesel. For instance, the Biomass Crop Assistance Program (BCAP; Section 9010) offers economic incentives to landowners, stating that whoever plants, produces, and distributes biomass feedstock crops for advanced biofuel production. Besides this, it also allows feedstock producers a 50% reimbursement on their money used to establish a biomass feedstock crop, as well as yearly payments for up to 5 to 15 years each for herbaceous and woody feedstocks.
• Furthermore, continuous technological improvements, advancements and innovations in agricultural practices, like genetically modified seeds and precision farming techniques that help enhance soybean yields and quality are presenting lucrative opportunities for market expansion.

Soybean Oil News

The report covers the latest developments, updates, and trends impacting the global soybean oil industry, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in soybean oil production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that impact the soybean oil price trend.

Latest developments in the soybean oil industry:

• In March 2024, Bunge and Chevron collaborated to form Bunge Chevron Ag Renewables LLC to build a new oilseed processing plant near its current processing facility located on the Gulf Coast in Destrehan, LA. The plant will feature a flexible design that will allow it to process both soybeans as well as soft seeds, including novel winter oilseed crops, like winter canola and CoverCress, among many others.
• In November 2023, Cargill announced the expansion and modernization of its integrated soybean crush and refined oils facility in Sidney, Ohio. The upgraded facility went online in September, allowing Cargill to better serve farmers and fulfill the growing demand for soy products across food, feed, and renewable fuel end user sectors.
• In October 2023, Louis Dreyfus Company (LDC) announced the construction of a soybean processing plant in Upper Sandusky, Ohio in the US. This processing complex will be featured with integrated crushing, vegetable oil refining, and lecithin manufacturing and packaging capabilities.

Product Description

Soybean oil refers to a kind of vegetable oil acquired from the seeds of soybeans, one of the most regularly cultivated legumes worldwide. This oil is extracted by crushing or pressing soybean seeds and put through vigorous refining processes to remove harmful impurities and improve its quality.

Soybean oil’s neutral flavor and odor, ease of mixing, and prospective health benefits make it an important ingredient employed in cooking and food production processes. It is regularly used for frying, baking, sautéing, and making salad dressings owing to its high smoke point.

Along with this, this oil’s neutral taste helps it to mix well with an array of edible ingredients, making it a broadly popular choice in commercial as well as home kitchens. Soybean offers excellent content of polyunsaturated fats, especially omega-6 fatty acids alongside vitamin E, an antioxidant known for many health benefits.

In addition to its culinary uses, it serves as the foundation for biodiesel production, giving a green and renewable alternative to fossil fuels. Additionally, it is included in formulations used in the production of cosmetics, medications, and as an ingredient in animal feed.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of soybean oil pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices.
• The study examines factors affecting soybean oil price trend, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights. The soybean oil price charts ensure our clients remain at the forefront of the industry.