Despite Decline, July Soy Oil Contract Sets Intraday Record

Soybean oil prices were mixed as concerns about early season growing conditions drove soybean complex prices sharply higher in the overnight session. However, prices peaked in the first hour of trading and moved steadily lower throughout the rest of the session, with selling accelerating during the U.S. opening. The weakness in soybean futures drove the benchmark contract lower, but expectations of rising domestic demand from the biofuel industry lifted the back end of the forward curve.

The palm oil market was closed in observance of a public holiday.

After the close, the United States Department of Agriculture (USDA) released its weekly Crop Progress report for the week ending June 6. The report contained the initial crop condition ratings for the U.S. soybean crop. USDA reported 67 percent of the crop was rated good or excellent, three percent below…