According to StoneX, the soybean oil registered an appreciation last week, driven by the United States' decision to impose import tariffs on Canada, Mexico and China. After four practically stable trading sessions, contracts jumped 2.5% on Friday (31), reaching the highest level in two weeks. The March 2025 maturity closed at US¢ 46.1/lb, registering an increase of 2.0%. This movement reflects the perception that the measure may favor the consumption of American soybean oil. In addition, the decision may strengthen its competitiveness in the domestic market.
The Asian market operated with reduced volumes due to the Lunar New Year holiday, which limited major fluctuations. In addition, Bursa Malaysia remained closed on Wednesday and Thursday, and Chinese exchanges also suspended trading. As a result, the April 2025 contract was quoted at USD 963.8/t, remaining stable compared to the previous week. Thus, the lack of new movements during this period contributed to the lack of clearer direction in prices in the region.
The imposition of tariffs by the US adds a new element to the global soybean oil scenario. Domestic demand in the United States is expected to increase, which could support prices in the short term. However, the resumption of operations in Asia could bring new influences to the market. This is especially relevant when considering the impact of Chinese consumption on international vegetable oil prices.
“The Asian market had significantly lower volumes and little news due to the Lunar New Year holiday, with Bursa closed for operations on Wednesday and Thursday, with Chinese stock exchanges also paralyzed due to the holiday,” he concludes.
Source: Leonardo Gottems | agrolink
