Oilseed Weakness Continues to Drive Soybean Oil Selling

The speculative selling in oilseeds combined with long oil share positions liquidation continued to pressure world vegetable oil prices on Thursday. The decline extended the streak of down days for most soybean oil contracts to three, the longest streak of declines since prices peaked in mid-March. The weather forecast suggests planting progress will continue at an average or better than average pace over the next two weeks, potentially continuing the pressure on oilseed prices, and by extension, vegetable oil markets.

So much for the theory that longs would hold out to take delivery in the May contract. Open interest before Thursday’s session was nearly 6,000 contracts, close to the volume traded on the last day before first notice day. The volume combined with a three-cent decline suggesting fund liquidation likely…