Vegetable Oil Prices Fall Ahead of Key Data Releases

Vegetable oil prices fell on Thursday as weakness in crude oil prices and position squaring ahead of the release of monthly fundamental data weighed on prices. Crude oil was generally unchanged in the overnight session, which limited the decline in palm oil futures. However, prices moved sharply lower during U.S. trading hours, which triggered fund spreading that enhanced the weakness in soybean oil prices.

Soybean oil futures fell by almost one percent (August contract -26 basis points per pound) as the top of the recent trading range once again provided resistance. Buying at the 10-day moving average limited the decline. However, the failure of prices to move above the recent trading range despite a rally in soybean futures means it will likely take a change in the fundamental outlook for the most actively traded…