Soy Oil Gives Back Gains as Funds Liquate Long Oil Share Positions

Following a midweek rally, soybean oil futures prices in Chicago plunged on Thursday, giving back gains made in the previous day and then some, ending near session lows amid fresh selling and the liquidation of long oil share positions. Nearby soybean oil futures were down more than 2 1/2 percent at settlement (October contract -148 basis points per pound), while the benchmark soybean oil contract was 2.6 percent lower (December contract -153 basis points per pound). Losses for deferred contracts were slightly smaller in percentage terms but still more than two percent (May 2022 contract -130 basis points per pound).

The soybean oil futures market opened to the upside on follow-through buying but quickly turned lower and continued to sell off after the United States Department of Agriculture (UDA) on Thursday issued its latest weekly export sales data. For the week ending September 9,…