Rainfall Triggers Profit-Taking in Soybean Oil Market

Soybean oil futures fell on Monday as rainfall in some of the driest areas of the Corn Belt triggered selling during U.S. trading, and as soybean futures fell from highs, funds liquidated long oil share positions. Steady to marginally lower crude oil prices may have also contributed to the weakness. The Malaysian market was closed in observance of a holiday.

Soybean oil futures fell about one percent (December contract -38 basis points) after testing the psychologically critical 34-cent level in the overnight session. The decline left the benchmark December contract below the 33-cent level. While the daily change was relatively large, the selling during U.S. trading hours drove the December contract down 118 basis points from the overnight high. Technical selling above the upper Bollinger band contributed to the…