Spot basis on central Illinois and US Gulf Coast crude-degummed soybean oil continued to move higher on Tuesday July 9, while soy oil futures in Chicago fell for a second straight session.

Following last week’s rally, August soybean oil futures on the Chicago Mercantile Exchange deflated again on Tuesday, with broad-based profit-taking and the liquidation of long positions by funds pressuring prices. The August soybean oil futures contract settled at $0.4695 per lb on Tuesday, declining by 214 basis points, or 4.36%, from a close of $0.4909 per lb on Monday July 7.

Soybean oil cash prices have been rebounding from multi-year lows hit earlier this year that resulted from a massive build-up in supply caused by slower-than-expected demand from the US biofuels sector.

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