Soy Oil Continues Slide on Selling in Soybean Futures

Soybean oil prices continued to move lower on Tuesday as weakness in soybean futures triggered fund meal/oil spreading. The decline in soybean prices more than offset gains in palm oil prices, leaving the spread between soybean oil and palm oil close to the recent lows. Robust soybean meal demand is likely to continue to drive meal/oil spreading by funds, leaving soybean oil futures to reflect any additional declines in soybean prices. Oil share for the January contracts settled at 32.2 percent on Tuesday, a slight increase from the average of 32.1 percent in November and 31.1 percent in October. However, oil share could fall back to the monthly average low of 30.2 percent in March if soybean futures continue to decline. That said, world cash vegetable oil prices remain close to recent highs, so bullish world vegetable oil fundamentals may limit…