On the daily chart RSI shows extreme oversold conditions.. may be worth a punt here.. The DEC contract has more volume..
It takes 7.6 lbs of soybean oil to make a gallon of bio-diesel. Let's say the bean oil costs 34 cts so that's $2.58 a gallon raw material cost. Unless all the other fats and greases used to make bio-diesel have had a similar drop (last time I looked they were 38 to 40 cts/lb), it seems like bean oil may have a ready market at the bio-refineries.
Relatively cheap at current level, Bean Oil still commands a premium of $90/MT over crude palm oil, historically it's been at $150 and did narrow down to even money in recent times.
can anyone confirm that this index replicates the "spot" price of Soybean Oil? It appears to me it does but I haven't looked at how its calculated. that last time it registered an RSI below 25 on the weekly chart this did bounce.. based on everything ive read, fundamentals point to this not having much more downside based on energy demand and possible selling exhaustion. today there was a nice fakeout on the on the hourly chart above DEC 33.50