Soybeans’ fuel for the tank is doing three times better than its fuel for organics.
Prices of soybean oil, or , one of the main feedstocks for biofuels, are up 66% on the year. , the raw material that gets crushed mostly into oil and animal feed—and to a lesser extent as food for humans—are up just 20% since the start of January.
Most-active soyoil hit an all-time high of 73.74 cents per pound on the CBOT, or Chicago Board of Trade, on Monday.
Booming global demand for vegetable oils—coupled with an expected tightening in soyoil supplies over the next year—have kept futures at historic levels.
Chart courtesy of The Hueber Report
Money managers barely adjusted their views on CBOT soybeans and soybean oil much since the beginning of the month. As of June 1, their soybean net long stood at 138,788 futures and options contracts, down fewer than 1,000 on the week.
They extended their net long in soybean oil by...read more...