Energy Weakness Triggers Profit-Taking in Vegetable Oils

Energy Weakness Triggers Profit-Taking in Vegetable Oils

Energy Weakness Triggers Profit-Taking in Vegetable Oils

Selling in the energy complex triggered weakness in vegetable oil markets on Tuesday. Rainfall in key Argentine growing areas also contributed to the bearish tone. However, both markets found support at the five-day exponential moving average, suggesting the selling may be short-lived. That said, uncertainty about the European vaccine roll-out and a set of disappointing U.S. economic indicators (retail sales, industrial production, and homebuilder confidence) could extend weakness in energy prices and, by extension, potentially in vegetable oil futures. Still, world vegetable oil fundamentals remain bullish and domestic demand in the U.S. remains robust, suggesting the potential for the spread between soybean oil and heating oil futures to continue to rally.

The spread between the May soybean oil and palm oil contracts…

Membership is required to view the rest of this post.
Click here to learn more and sign up for a free 7-day trial!

Blog

11.22.2024

Biodiesel margins rise, but window of opportunity limited

Biodiesel margins rise, but window of opportunity limited

Biodiesel margins continued to rise during the week to Friday November 22. The bean oil/heating oil (BOHO) spread boosted margins by falling to its lowest level since August 27.

11.22.2024

Gulf prices average higher despite weeklong declines in SBO

Gulf prices average higher despite weeklong declines in SBO

For the week ended Friday November 22, packer bleachable fancy tallow (BFT) remained unchanged from the previous week’s average, while Gulf Coast-delivered tallow rose 2.7%, primarily...

11.22.2024

Bloodmeal largest price mover week on week; November cattle on feed higher

Bloodmeal largest price mover week on week; November cattle on feed higher

US animal protein prices were mixed to mostly higher for the week to Friday November 22, with only meat and bonemeal showing a slight price reduction due to tighter...

Latest Tweets