ST. LOUIS, November 21, 2018\n - The Food and Drug Administration (FDA) authorized the use of a \nqualified health claim citing that oils high in oleic acid, such as high\n oleic soybean oil, may reduce the risk of coronary heart disease. Food \ncompanies with existing products which meet FDA requirements can \nconsider adding the health claim to labels of foods made with the \ningredient (with inclusion of the proper disclaimers), and brands \nseeking to source heart-healthy ingredients for emerging products can \ntest high oleic soybean oil in formulations.
The authorized health claim applies to edible oils containing at least \n70 percent of oleic acid, a monounsaturated fat that provides the \nstability required for oils to perform in a variety of food \napplications, per serving. High oleic soybean oil oleic acid levels \nexceed 70 percent and can go as high as 75 percent, and the oil is lower\n in saturated fat compared to some other high-stability oils commonly \nused in food production.
High oleic soybean oil, approved for global use as of December 2017, \noffers food companies increased functionality, such as extended fry \nlife, increased stability and a neutral flavor profile, making it ideal \nfor frying, sautéing, baked goods and snack foods. It is a domestic \ncrop, supporting U.S. farmers.
\"The new health claims may motivate consumer packaged good and private \nlabel brands to consider reformulating products, such as salad dressings\n or bottled vegetable oils, using high oleic soybean oil,\" said Dan \nCorcoran, QUALISOY chairman. \"This announcement serves as an opportunity\n for those companies, as well as high oleic soybean oil suppliers and \ndistributors, to call the health claim out on packaging to help drive \nsales.\"
The announcement of the qualified health claims for oils high in oleic \nacid follows the FDA's August 2017 authorization of the use of a \nqualified health claim confirming conventional soybean oil's ability to \nreduce the risk of coronary heart disease.1 Conventional and high oleic soybean oils have different fatty acid profiles.
\"As\n farmers, we take joy in providing Americans with an ingredient that has\n the potential to improve nutrition and prevent chronic disease, so the \nnews of the qualified health claims is a source of pride for all U.S. \nsoybean farmers,” said Lewis Bainbridge, United Soybean Board chair. \n\"High oleic soybean oil is a sustainably produced crop, and consumers \nand the food industry alike can be confident that they are serving a \nquality ingredient to their families and customers.”\n
The newly authorized qualified health claims include2:
\"Supportive\n but not conclusive scientific evidence suggests that daily consumption \nof about 1½ tablespoons (20 grams) of oils containing high levels of \noleic acid, when replaced for fats and oils higher in saturated fat, may\n reduce the risk of coronary heart disease. To achieve this possible \nbenefit, oleic acid-containing oils should not increase the total number\n of calories you eat in a day. One serving of [x] oil provides [x] grams\n of oleic acid (which is [x] grams of monounsaturated fatty acid).\"
\"Supportive but not conclusive scientific evidence suggests that daily \nconsumption of about 1½ tablespoons (20 grams) of oils containing high \nlevels of oleic acid, may reduce the risk of coronary heart disease. To \nachieve this possible benefit, oleic acid-containing oils should replace\n fats and oils higher in saturated fat and not increase the total number\n of calories you eat in a day. One serving of [x] oil provides [x] grams\n of oleic acid (which is [x] grams of monounsaturated fatty acid.\"
About United Soybean Board
USB’s\n 73 farmer-directors work on behalf of all U.S. soybean farmers to \nachieve maximum value for their soy checkoff investments. These \nvolunteers invest and leverage checkoff funds in programs and \npartnerships to drive soybean innovation beyond the bushel and increase \npreference for U.S. soy. That preference is based on U.S. soybean meal \nand oil quality and the sustainability of U.S. soybean farmers. As \nstipulated in the federal Soybean Promotion, Research and Consumer \nInformation Act, the USDA Agricultural Marketing Service has oversight \nresponsibilities for USB and the soy checkoff. For more information on \nUSB, visit www.unitedsoybean.org.
About QUALISOY
QUALISOY\n is an independent, third-party collaboration that promotes the \ndevelopment of and helps build the market for the latest enhanced \nsoybean oils, including high oleic soybean oil. High oleic soybean oil \ndelivers extended shelf life, increased stability and a neutral flavor \nprofile, making it ideal for frying, sautéing, baked goods and snack \nfoods. In food applications that require high stability oils, high oleic\n soybean oil performs and functions similarly to partially hydrogenated \noil and oils high in saturated fat and outperforms most other high \nstability oils – without contributing trans fat.
","References":"References
","AuthorName":"","AuthorImage":"https://www.qualisoy.com/images/default-source/default-album/qua-profile.png?sfvrsn=e05200fc_4","AuthorAlt":"QUA-Profile","PreviewImage":"https://www.qualisoy.com/images/default-source/default-album/qua-website-header-template-04.jpg?sfvrsn=12a78154_2","PreviewAlt":"QUA-Website-Header-Template-04","PublishDate":"2019-03-05T22:33:36.823Z","ImageURL":"https://www.qualisoy.com/images/default-source/hero-images/qua-website-header-template-darkest--2.jpg?sfvrsn=7ed33ed2_2","MainAlt":"QUA-Website-Header-Template-Darkest--2","Type":{"Id":"3408786a-41d4-443d-99b2-f40abfa34bba","Name":"Press Releases"},"Topic":[{"Id":"21985ed6-591f-49ca-a333-fe0e7966ebab","Name":"Regulatory & Approvals"},{"Id":"adc41369-a6f6-4296-990b-9cd55ac8b45e","Name":"High Oleic Soybean Oil"},{"Id":"2cd7eb18-3593-43bc-b608-00a86bda1317","Name":"Health & Nutrition"}]},{"Id":"a821afda-e157-4237-8112-4d806ca9b3fa","Title":"Refined soybean oil prices chart a separate course from crude soybean oil futures","Summary":"As the trade dispute with China accelerates, and a very good and slightly early 2018 soybean crop has become virtually assured, both soybeans and crude soybean oil futures…","URL":"refined-soybean-oil-prices-chart-a-separate-course-from-crude-soybean-oil-futures-2","ExternalUrl":"","Content":"1 U.S. FOOD AND DRUG ADMINISTRATION. \"SOYBEAN OIL AND REDUCED RISK OF CORONARY HEART DISEASE.\" JULY 31, 2017.
2 THE\n CLAIM IS SUPPORTED BY A COMPREHENSIVE REVIEW OF SCIENTIFIC LITERATURE \nAND RECOMMENDATIONS FROM GOVERNMENTAL AND PROFESSIONAL ORGANIZATIONS.
As the trade dispute with China accelerates, and a very good and slightly early 2018 soybean crop has become virtually assured, both soybeans and crude soybean oil futures have been in a general decline. Soybean futures prices are off nearly 25 percent and soybean oil futures are off over 15 percent from May. However, refined, bleached and deodorized (RBD) soybean oil prices in the spot cash market are off a mere $0.01 per pound. The last three months of 2018 are quoted a bit lower, but just about $0.03 below the spot quotes.1
A driving factor is the premium for canola oil versus soybean oil, which stands at a fairly wide $0.06 per pound. Canola crushing margins are currently very poor, while soybean crushing margins are excellent; this is the result of soybean oil futures’ share of the soybean value being at the low end of the long-term range. Most recently, the oil share has been running about 30 percent versus the long-term range of generally 30 to 40 percent. As recently as 2011, the oil share of soybean product value was regularly at 45 percent. With oil share persistently around 30 percent, the canola/soybean oil price spread tends to favor canola. 1
Another factor in strong refined soybean oil prices is the increasing production of renewable diesel. Most biodiesel is produced by blending soy methyl ester with petroleum diesel in various proportions. In recent years, however, a number of petroleum refineries have added a process that allows RBD soybean oil to be refined with crude petroleum to produce biodiesel within the petroleum refining process. This is referred to as “renewable diesel.” In addition to being an economical way to meet the required volume obligations under the Environmental Protection Agency’s (EPA) biodiesel mandate, the current price spread between crude petroleum and soybean oil makes biodiesel more economical to produce than petroleum diesel.2
While crude soybean oil futures prices continue to set the starting point for refined oil prices over the upcoming crop year, look for the trend in soybean oil share of soybean product value and the spread between soybean oil prices and crude petroleum prices to contribute to record or near-record soybean oil refining premiums to keep RBD soybean oil prices firm.
Trade issues with China, America’s number one soybean export destination, continue to weigh on soybean futures prices, and this has been further impacted by what the United States Department of Agriculture (USDA) projects to be a record 2018 soybean crop. The crop is maturing early and preliminary yields seem to be even greater than expected. In late September, soybean futures made a 10-year low at $8.12 per bushel.3
This has in turn put a great deal of pressure on all vegetable oil prices, including soybean oil. Spot RBD was quoted at $0.37 per pound at the end of May, and traders report that this position is buyable today at approximately $0.36 per pound. 3
The USDA reports issued on July 12 showed the undeniable influence of the trade conflict on the projections for marketing year 2018-19, with the following key points:
The net result for the soybean oil trade is that soybean oil stocks are now forecast to grow from 1,711 million pounds at the end of 2017 to 2,316 million pounds in September 2018, and remain somewhat heavy at 2,236 in September 2019. As a result of all of these dynamics, crude soybean oil at crushing plants is projected by USDA to cost $0.30 to $0.34 this year and $0.28 to $0.32 next year.3
","References":"
1. CME Soybean Futures Quotes, http://www.cmegroup.com/trading/agricultural/grain-and-oilseed/soybean_quotes_globex.html
2. “The Complex Dynamics of Coprocessing.” Biodiesel Magazine, 2018. http://www.biodieselmagazine.com/articles/2516478/the-complex-dynamics-of-coprocessing
3. USDA World Agricultural Supply Demand Estimates, http://usda.mannlib.cornell.edu/usda/waob/wasde//2010s/2018/wasde-07-12-i’2018.pdf
4. Foreign Agricultural Service, https://apps.fas.usda.gov/gats/default.aspx
To some extent, soybean oil is a residual commodity, secondary to soybean meal, in driving processing rates and influencing complex prices. Crush rates are driven primarily by immediate soybean meal demand, and soybean oil inventories at crushing plants vary based on the balance of demand between soybean oil and soybean meal at any given time.
\nRoughly half the soybeans grown in the U.S. are exported as whole beans. On average, China buys half of the total soybeans exported from the U.S.1 The balance between the demand for exported soybeans and soybean meal greatly impacts the crushing margin, which in turn, impacts the crush rate and production of soybean oil. The production rate impacts the buildup or draw down of soybean oil stocks and subsequently, the price of soybean oil.
\nThe trade war involving soybean exports from the U.S. to China has a dual impact on the price prospects for soybean oil. Since the escalation of the trade war, the price for soybeans has dropped approximately 20 percent, the price for soybean oil futures has dropped 10 percent and the crushing margin has widened by about 15 percent.2 While part of this decline in soybean price can be attributed to the excellent condition of the current U.S. crop, the trade war is certainly the primary driver.
\nThe USDA reports issued on July 12 showed an undeniable influence of the trade war on the projections for marketing year 2018-19, with the following major highlights:
\nSoybean oil stocks are now forecast to grow from 1.71 billion pounds in December 2017 to 2.32 billion pounds this September, and remain somewhat heavy at 2.24 billion pounds the following September. As a result, USDA projects crude soybean oil to cost $0.2950-0.3350 this year and $0.2800-0.3200 next year.3 This implies soybean oil will be delivered to the East Coast and Midwest at less than 35 cents per pound this summer, and another one to two cents lower the following marketing year.
\n\n
This positive turn can be explained by three factors: the recent dialogue between Chinese and American officials, the demand of U.S. soy regardless to any trade war, and the weather-related reduction in the Argentine soybean crop.
\n
\nIn the April USDA World Agricultural Supply and Demand Estimates (WASDE) update, USDA projected global soybean imports to be up five percent at more than 150 million metric tons.2 The U.S. is projected to produce 37 percent of soybeans supplied to the world. Brazil is expected to produce 48 percent, while the remaining 15 percent will be sourced from other origins. Tariffs on U.S. soybeans will not significantly affect the ultimate export number for domestic soybeans.
Any negative impact on soybean values would tend to weigh most heavily on soybean oil values, since global soybean meal demand remains extremely robust in the developing world. As more soybean meal is used to feed livestock and poultry, oil surpluses develop.1 The latest WASDE update forecasted U.S. soybean oil stocks to be at a near 2 billion pounds in September 2018.2 This would be the densest level in six years. USDA is forecasting 2017-18 soybean oil prices to average about 1 cent per pound, which is similar to its current level.
\n\n
In late October, the U.S. Environmental Protection Agency’s (EPA) decided not to move forward with reducing the biomass-based diesel and advanced biofuel requirements after the organization received backlash from corn-state lawmakers who expressed concerns that the moves would undercut ethanol demand.1 In the USDA’s December supply demand update (WASDE), demand for soybean oil during the current marketing year as biodiesel feedstock was raised from 7 billion pounds to 7.5 billion pounds, a record amount.2
The WASDE also showed reduced domestic usage of soybean oil of 300 million pounds, so the net increase in forecast usage is only 200 million pounds. This did not affect future prices subsequent to the report. The USDA’s forecast cash price for soybean oil during the marketing year is an unchanged 34.5c/lb., which is a 2c/lb. increase from 2016’s average price. There were no significant changes to the soybean and soybean meal supply and demand projections in this report.
Expect the soybean oil price to display a soft tendency in the near term and to follow petroleum prices, longer term.
","References":"ST.\nLOUIS (January 18, 2018) – The soybean industry successfully passed the\nfinal regulatory measure to secure global approval for trade of high\noleic soybeans upon receiving the European Commission’s authorization on\nDec. 22, 2017 to use the stacked traits found in Pioneer brand Plenish®\nhigh oleic soybeans for food and feed.1 This monumental\ndecision, combined with final global approval Monsanto’s Vistive® Gold\nhigh oleic soybeans received upon China’s authorization of importation\nin June 2017,2 increases the reliability of supply of high oleic soy for the food industry.
“Obtaining\nfull global regulatory approval is key for the entire soybean value\nchain, as it will boost Plenish and Vistive Gold soybean acreage,” said\nRichard Galloway, QUALISOY oils expert. “This will allow the industry to\nreach its goal of planting 18 million high oleic soybean acres,\nresulting in 9 billion pounds of high oleic soybean oil. In the coming\ndecade, high oleic soybeans will become the fourth-largest grain and\noilseed crop in the U.S.”3
In addition to gaining the green light for global trade to ensure a\nreliable supply of high oleic soybeans, high oleic soybean oils contain 0\ngrams of trans fat per serving, as well as lower saturated fat\n(compared to conventional soybean oil).4 Food manufacturers\nbenefit from the improved shelf life and neutral flavor of high oleic\nsoybean oil, while the foodservice industry appreciates enhanced\nfunctionality, extended fry life and reduced build-up of polymers on\nequipment.5
“Achieving high oleic global regulatory approval enables U.S. soybean\nfarmers to provide the food industry with a product they want,” said\nLewis Bainbridge, United Soybean Board chair and soybean farmer from\nSouth Dakota. “Farmers are excited to grow high oleic soybeans and\nhaving full global approval means we can continue to increase high oleic\nsoybean acreage.”
As the June 2018 Food & Drug Administration (FDA) deadline to remove partially hydrogenated oils (PHOs) from food6\napproaches, oils such as Plenish and Vistive Gold, which contain 0\ngrams of trans fat per serving, are an excellent alternative offering\nfunctionality without compromising flavor.
About QUALISOY
QUALISOY\nis an independent, third-party collaboration that promotes the\ndevelopment of and helps build the market for the latest enhanced\nsoybean oils, including high oleic soybean oil. High oleic soybean oil\ndelivers extended shelf life, increased stability and a neutral flavor\nprofile, making it ideal for frying, sautéing, baked goods and snack\nfoods. In food applications that require high stability oils, high oleic\nsoybean oil performs and functions similarly to partially hydrogenated\noil and oils high in saturated fat and outperforms most other high\nstability oils – without contributing trans fat.