Plunging Chinese Futures Continue to Pressure Vegetable Oils

World vegetable oil prices plunged on Wednesday as Chinese futures continued to move lower, which triggered selling in the palm oil and soybean oil markets. Strength in the dollar also seems to be driving macro flows out of commodities, which contributed to the inability of West Texas Intermediate (WTI) futures to settle above the $40 per barrel level despite bullish inventory data. Selling across financial markets following the close of agricultural trading may weigh on commodity prices when the market opens for the overnight session. Still, it is difficult to imagine another day of sharp declines given the relatively bullish fundamental outlook for world vegetable oils. However, the Chinese market remains the leading market, and further profit-taking in Chinese futures will likely continue to trigger selling in the palm oil and soybean oil…