Caught something interesting in the soy market this week. Soybean futures jumped 4 to 5 and a half cents on Tuesday, with the national cash price climbing to $10.00 and a half, up about 4 3/4 cents. What's really moving things though is the bean oil side of things. Soy bean oil futures are surging, gaining 102 to 129 points, and that's after Treasury released new guidance on the 45Z tax credit this morning. That announcement seems to have lifted some of the uncertainty that's been hanging over the market. Meanwhile soymeal went the other direction, dropping between $1.40 and $2.60.

Looking at the supply picture, the USDA's latest Fats and Oils report showed December soybean crush at 229.84 million bushels. That missed expectations, but the year-over-year numbers tell a different story. We're seeing a 4.24% jump from November and 5.59% higher than last year. Since the marketing year started back in September, cumulative crush is tracking at 891.58 million bushels, up 7.43% compared to the same period last year.

On the demand side, EU soybean imports from July through early February came in at 7.29 million metric tons. That's notably down though, about 1.33 million metric tons less than the previous year over the same window. So you've got this mix of stronger domestic crush activity but softer global import demand. The soy bean oil strength seems to be anchored on that tax credit momentum and the domestic crush support.

Closing prices from late last week show the upside across the board. March contracts settled at $10.65 3/4, May hit $10.77 1/4, and July finished at $10.90 1/2, all posting gains around 4 to 5 1/2 cents. The pattern suggests traders are positioning for continued strength in both beans and bean oil as we move through spring.