Fund Spreading Continues to Pressure Soybean Oil Prices

Soybean oil prices continued to move lower on Thursday due to the continued collapse in crude oil prices and declines in vegetable oil futures on the Dalian exchange. The Malaysian palm oil market was close in observance of a national holiday but will likely sharply decline when it reopens Thursday night. West Texas Intermediate (WTI) futures fell another 3 1/2 percent (December contract -$1.30 per barrel) to leave the benchmark contract at its lowest level since May 28. The December contract traded below the $36 per barrel level but recovered some of the early weakness driven by comments from the President of the European Central Bank, suggesting that the European economy deteriorated more quickly than anticipated. The decline left the benchmark contract well below the lower Bollinger band but above the $36 level, suggesting a continuation of the…