Relationship between soybean oil and soybean meal
Let me start with a simple truth. Is the price of a product going up or down? If speculation is ruled out, the most fundamental thing is to look at the relationship between supply and demand. Well, now the price of soybean oil has to be increased because the United States needs to use more soybean oil to increase the production of biodiesel, which leads to an increase in the demand for soybean oil. And where does soybean oil come from? It is extracted from soybeans. However, one thing is that soybean will produce additional product soybean meal while refining soybean oil. About 20 kg of unrefined soybean oil and 80 kg of soybean meal can be refined per 100 kg of soybean. With the increase of soybean meal supply, the price of soybean meal naturally decreases. Therefore, because of biorefinery, soybean oil and soybean meal have become negatively correlated.