Soybean oil prices fall in Brazil and Argentina amid sharp decline in crude oil futures

Soybean oil export prices in Brazil and Argentina fell significantly on November 4, 2026, as a sharp decline in crude oil futures weighed on soybean oil contracts on the Chicago Board of Trade (CBOT). December West Texas Intermediate (WTI) crude futures dropped by 8.3%, or $7.97 per barrel, to settle at $88.12/barrel. January Brent crude contracts declined by 8.7%, or $8.98, to $94.62/barrel. Lower crude oil prices weakened support for vegetable oils used as feedstocks in biodiesel and renewable diesel production.

Following the crude oil selloff, December soybean oil futures on CBOT declined by 2.7%, or 1.75 cents per pound, to 63.53 cents/lb, compared with 65.28 cents/lb a day earlier. The decline was equivalent to approximately $38.58/t, putting substantial pressure on South American soybean oil export prices. However, stronger export basis levels in Argentina and Brazil partially offset the decline in futures quotations.

According to Platts, part of S&P Global Energy, Argentine soybean oil FOB Up River for December shipment declined by $14.33/t to $1,188.95/t. Meanwhile, the export basis strengthened by 110 points to minus 960 points against the December CBOT futures contract. This provided approximately $24.25/t of price support, limiting the decline in Argentine soybean oil prices on the physical market.

In Brazil, soybean oil FOB Paranaguá for December shipment fell by $20.95/t to $1,193.36/t. The export basis strengthened by 80 points to minus 940 points against December CBOT futures, partially offsetting the decline in exchange-traded prices by approximately $17.64/t. As a result, Brazilian soybean oil’s price premium over Argentine supplies narrowed to $4.41/t from $11.03/t a day earlier. Meanwhile, Brazilian soybean oil FOB Paranaguá for January shipment declined by $20.28/t to $1,180.36/t.

Market developments on November 4 highlighted the close relationship between energy prices and vegetable oil markets, primarily due to the use of vegetable oils in biofuel production. The sharp decline in crude oil futures weakened demand-related support for soybean oil and pushed its futures prices lower. However, stronger export basis levels in Argentina and Brazil limited the decline in physical market prices, while the narrowing price gap between the two countries indicated intensifying price competition among South American suppliers.

Tags: soybean oil, Brazil, Argentina