Veg Oil Prices Crushed by Weaker basis, Bearish Weather 

Vegetable oil prices were down sharply on Wednesday, as renewed selling pressure in palm oil futures and bearish weather forecasts weighed on the U.S. soybean futures complex. Expectations for rain and cooler weather in parts of the Corn Belt and northern Plains through month’s end triggered heavy liquidation in soybean markets.

Nearby soybean oil futures and deferred contracts through December 2021 fell to the daily limit of 3 1/2 cents in afternoon trade. Benchmark soybean oil sank to a low of 62.90 cents per pound, settling down for a sixth straight day, declining 5 1/3 percent (July contract -350 basis points per pound). Losses in deferred soybean oil contracts for January 2022 and beyond were not as large (May 2022 contact -307 basis points per pound).

Updated forecasts…