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Market Trends | January 6, 2016

commodity oil pricing

Market Trends | January 6, 2015 –

Here is a look back at some of the key events that affected the commodity oils market:
• During 2015 the market traded down to levels not seen since October 2006, but overall the decline in futures prices was just 5% YOY.
• The South American crop harvested in January/February was a record crop which helped pressure futures prices.
• A wet spring delayed plantings in the US and Canada which led to support in prices based on ideas of lower yields.
• The summer weather between June and August was nearly ideal with timely rains which caused prices to decline from $.3529/lb to $.2538/lb.
• During the summer months crude petroleum lost nearly 1/3 of its value; trading from $60/barrel down to $40/barrel.
• Better than expected yields in both the US and Canada helped keep prices low during harvest (September and October).
• Talk of El Nino and the adverse effects on the palm market helped push futures prices higher during the last 2 months of the year.
• The EPA announced an increase in the bio-diesel mandate late in the year which also helped push futures prices higher.

Weekly chart of soybean oil futures for 2015

soy pricing

 

Disclaimer: Oasis Foods shares the information above to provide insight on the factors affecting the pricing of our products. It is intended to be used for informational purposes only and should not be interpreted as purchasing advice.