By Alan Bjerga
July 2 (Bloomberg) -- U.S. soybean-oil inventories rose 7.2 percent in May as processors including Bunge Ltd. reduced production of biodiesel and demand for cooking oil fell, government data show.
Reserves climbed to 3.193 billion pounds from 2.978 billion pounds in May 2008, the Census Bureau said today in a report on its Web site. Stockpiles increased 0.9 percent from a revised 3.163 billion pounds in April.
Consumption of soybean oil in food products dropped 6.4 percent to 1.169 billion pounds in May from 1.248 billion a year earlier. Usage was down 0.4 percent from 1.174 billion pounds in April.
Production of refined oil dropped 4.8 percent to 1.216 billion pounds from 1.277 billion a year earlier. Output rose 2.6 percent from 1.185 billion pounds in the previous month.
Consumption of soybean oil to make methyl esters, used to mix with diesel fuel, plunged 65 percent to 82.7 million pounds in May from 233.3 million a year earlier. Output fell 1.8 percent from 84.3 million pounds in April.
Soybean-oil futures for August delivery rose 0.8 cent, or 2.3 percent, to 36.02 cents a pound yesterday on the Chicago Board of Trade. The price has gained 7.2 percent this year.
Soybean futures for November delivery jumped 34.5 cents, or 3.5 percent, to $10.155 a bushel yesterday in Chicago, up 3.6 percent for the year.
Soybeans are the second-biggest U.S. crop, valued at $27.4 billion in 2008, according to government figures. Corn was the largest at $47.4 billion.
To contact the reporter on this story: Alan Bjerga in Washington at abjerga@bloomberg.net
Last Updated: July 2, 2009 08:54 EDT
