The soybean oil futures market has been on fire. As of last Friday’s close (AUG 2023 Futures), the market was up 31.29% from its bottom in 12 trading days. The last twelve trading days are about as strong a technical move as you will see. Underneath the technical move is a solid fundamental supply/demand story and the current deterioration of N.A. crop conditions because of a lack of moisture.
See the two below charts for more insight.
Recently the soybean oil market closed at the furthest distance from the 30-week moving average since the Great Financial Crisis in late 2008. This is the 2nd most extreme reading for soybean oil’s performance against its prior 30-week performance in fifty years.
Why is this significant?
Jason Thomas and Lee Colonna of Healthy Brand Oil were recently featured in Spectrum Magazine, discussing how global events affect edible oil production and pricing.