Soybean Oil Basis

July 11th, 2011

Category: Oilseeds

By: Stephen S. Nicholson

Stephen S. Nicholson discusses the soybean oil basis and how they have appreciated dramatically since late spring time period. Three major factors have contributed: 1)The Missouri river basin flooding has caused logistical problems for two major plants in that area, 2) Bullish bio-diesel prices due to the renewal of the tax credit in January, and 3) Poor crush margins.