Economic Optimism Fades Leaving Vegetable Oils Mixed

Vegetable oil prices were mixed again on Monday as palm oil futures rose despite lower crude oil prices overnight, and substantial weakness across the soybean complex pressured soybean oil prices. Once again, crude oil prices rallied during early U.S. trading. However, the announcement that the California government would reinstitute some of the provisions it implemented this spring to slow the spread of the disease in its state drove crude sharply lower. The September West Texas Intermediate (WTI) futures contract fell back below the psychologically critical $40 per barrel level, and the resulting pessimism could weigh on vegetable oil prices in the short term.

Soybean oil futures declined for the fourth consecutive session with most contracts down about 1/2 percent (September contract -15 basis points per pound)….