CHICAGO- Chicago Board of Trade soy futures rallied on Friday after China said it would cut its export incentives for used cooking oil, a move that could curtail the flood of imports into the US, market analysts said.
Corn and wheat futures also turned higher on technical buying.
On Friday, China’s finance ministry announced it would reduce or cancel export tax rebates for a range of commodities and other products, including “chemically modified animal, plant, or microbial oils and fats, effective Dec. 1.”
The proliferation of imported used cooking oil in the US biofuel market has been a drag on demand for US soyoil, but a slowdown in used cooking oil exports from China could boost that demand, according to analysts. The most-active soybean contract on the Chicago Board of Trade (CBOT) finished up 11 cents at $9.98-1/2 per bushel.
