Veg Oil Prices Extend Lower on Profit-Taking, Crude Oil Collapse

Edible oil prices continued to sell-off on Tuesday, tracking weaker markets on the Dalian Exchange as fresh Covid-19-related lockdowns in China sparked worries of demand destruction for edible oils as well as energy. Extended losses for crude oil futures ahead of an expected rate hike by the U.S. Federal Reserve on Wednesday also pressed on global vegetable oil prices. West Texas Intermediate (WTI) crude oil prices breached the psychologically important $100 per barrel level to close 6.4 percent lower (April contract -$6.57 per barrel) at $96.44 per barrel amid progress in ongoing peace talks between Russia and Ukraine.

Soybean oil futures prices moved off lows after the National Oilseed Processors’ Association reported U.S. soybean crush in February slumped to its lowest level in five months at 165.024 million bushels. This was down more than nine percent on the month but was within…