Appeals Court Strikes Down EPA’s Denial of SREs
*Please Note – Bob Lane was out of the office today and will return on Tuesday, November 28, 2023.
On November 22, a U.S. appeals court struck down a decision...
Selling in Soybean Complex Drives Soybean Oil Prices Lower
Vegetable oil prices were mixed on Tuesday as continued strength in world vegetable oil cash prices helped lift palm oil futures, while selling across the soybean complex triggered profit-taking in soybean oil prices. Both markets moved independently from crude oil prices, which were lower overnight but rallied during the U.S. session, again.
Soybean oil futures declined by about 3/4 percent (September contract -17 basis points per pound). Selling above the upper Bollinger Band contributed to the weakness while buying below the psychologically important 31-cent level limited the decline. However, the move lower was accompanied by lower volume, so the move is not expected to be the beginning of a new trend.
Palm oil futures rose about 1 1/4 percent (October contract +37 ringgit per tonne). However, selling above the psychologically important 2,800-ringgit level limited the advance. The rally left the most actively traded October contract just 10 ringgit below the post-pandemic high, but like the soybean oil market, it occurred on declining volume. Traders are looking forward to the monthly Malaysian Palm Oil Board (MPOB) report, scheduled for release Sunday night to guide the short term direction of the market. In the meantime, the movement in vegetable oil prices on the Dalian will guide the U.S. and Malaysian markets.