Fund Spreading Continues to Drive Soybean Oil Futures Lower
World vegetable oil prices continued to move lower on Tuesday as follow-through selling in palm oil continued to trigger the liquidation of long oil share positions in the soybean oil market by funds. Crude oil traded higher overnight but was lower by the end of the U.S. agricultural session, contributing to the bearish tone. Traders are looking forward to the monthly World Agricultural Supply and Demand Estimates (WASDE) report, scheduled for release on Wednesday at 11 a.m. (CDT) for guidance on the next trend in prices. If the report features a bearish production forecast for soybeans, selling across the complex may weigh on soybean oil values even if the changes in USDA’s soybean oil balance sheets are bullish.
Nearby soybean oil futures declined by about 1/2 percent (September contract -11…
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