Decline in Energy Prices Drives Selling in Vegetable Oils

World vegetable oil prices were sharply lower on Friday, with the continued collapse in crude oil prices the most likely catalyst for selling on Friday. Some traders blamed President Trump’s contraction of the coronavirus as the reason for the weakness in crude oil futures. The President’s case highlights the reacceleration of infection rates, especially in Europe, stoking concerns about the resumption of economic restrictions to slow the second wave of the pandemic.

Crude oil prices fell more than 4 1/4 percent (November contract -$1.67 per barrel). The decline left prices at the lowest level since September 8. However, buying at the $37 level and the lower Bollinger band marginally limited the fall. Without an announcement of progress on a stimulus package in the U.S., or a slowdown in the growth rate of daily…