Soybean oil prices remain stagnant despite upward factors.

Oil futures contracts soy In the United States, prices remain largely unchanged, even in the face of factors that would normally support prices. Since mid-July, prices have remained between approximately 65 and 75 cents per pound, while... soy Grain prices hit three-year highs in early September, and WTI crude oil has remained near or above US$$ 100 per barrel in recent weeks.

The main reason is the relationship between supply and demand. After setting record targets for biomass diesel in 2026 and 2027 and signaling that imported raw materials would continue to receive full credit at least until 2028, biofuel producers increased their external purchases of inputs and vegetable oils.

Imports of finished biodiesel also increased. Between January and March, before the announcement of the new targets, the United States imported approximately 39,200 tons. From April to June, the volume rose to approximately 79,800 tons.

At the same time, domestic soybean oil production increased. The combination of higher domestic supply, raw material inflows, and biodiesel imports created a sufficient surplus to limit price increases.

According to a market source, prices are finding resistance near 71 to 72 cents per pound and support between 65 and 67 cents, a range where end buyers are returning to the market. The expected continuation of the renewable fuels program supports demand, but changes in its implementation maintain uncertainty.

The recent granting of tax exemptions to small refineries has increased doubts about short-term demand for biofuels. Therefore, favorable external factors have not yet been sufficient to move soybean oil futures out of the range observed in recent months.