Soybean Oil Futures Turn Higher on Weather after Sell-Off

Following sharp losses on July 19, U.S. soybean oil futures ended up but well off the day’s high on Tuesday, as the market renewed its focus on forecasts for the Corn Belt that could impact growing conditions. Initially shrugging off weather concerns at the start of the week, soybean oil prices came under heavy selling pressure on July 19 after the stock market posted its worst day this year on fears that another Covid outbreak could slow the global economy further. As a result, crude oil and commodity prices tumbled amid general risk-off selling across financial markets.

Early in the session on Tuesday, however, benchmark soybean oil futures climbed to a high two cents shy 68 cents per pound before the liquidation of long oil share positions after the release of a slightly more bearish GFS weather model calling for cooler temperatures and rain for the eastern and central Midwest pared gains. Nearby soy oil…