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Soybean oil market struggling this week

An ag economist says it’s been a rough start to the week for the U.S. soybean oil market.

University of Missouri’s Ben Brown says, “China placed a 100% tariff on Canadian canola oil, canola meal, and canola. That caused their markets to really crash. Canola oil competes with U.S. soybean oil. There was concern that canola oil would come down and displace some U.S. soybean oil.”

He tells Brownfield there’s some belief in the market that upcoming reciprocal tariffs could target canola oil. “This might not last overly long before the U.S. shields itself from a glut of canola oil coming down from Canada, but it’s still caused some pressure on that soybean oil market.”

Brown says the prospect of big South American crops has also impacted the soy oil market this week.

He made his comments during Brownfield’s Weekly Commodity Market Update.