Soybean Oil Falls on Profit-Taking and Fund Spreading

Profit-taking in vegetable oil futures drove soybean oil prices lower on Monday. Overnight weakness in soybean futures triggered selling in the soybean oil market that drove the benchmark contract almost one cent lower shortly after the U.S. opening. However, better-than-expected weekly export inspection data sent soybean and soybean oil futures sharply higher from the lows. Late in the U.S. session, selling in the soybean market and fund spreading drove the benchmark contract down to support at the 38-cent level. Weakness in energy prices contributed to the fund spreading. Position squaring ahead of the World Agricultural Supply and Demand Estimates (WASDE) report, scheduled for release on Thursday, may mute the changes in prices in the coming days. Still, tight supplies and rising demand from the biofuel industry will likely keep…