Vegetable Oil Prices Drop Ahead of Critical Week for Data

World vegetable oil prices moved lower on Friday as profit-taking in palm oil and selling across the soybean complex drove prices lower. Concerns about the inability of the U.S. Administration and Congress to agree on the next phase of relief for the pandemic weighed on crude oil futures, which settled about one percent lower. The concerns about the economic impact without a new aid package triggered general selling in commodities markets, which also weighed on vegetable oil futures.

Soybean oil futures fell more than one percent (September contract -37 basis points per pound). However, the decline in deferred futures was more significant, with most 2021 contracts down 1 3/4 percent (January contract -52 basis points). The liquidation of long oil share positions by funds also contributed to the weakness. Prices…