“I think the big drop in soybean oil had everyone take a pause,” one source said.

December soybean oil futures closed at 46.23 cents per lb on Tuesday, down by 1.91 cents, or nearly 4%, from a close of 48.14 cents per lb on Monday November 11.

The decrease on Tuesday tracked losses in palm oil futures, as well as the impact of President-elect Donald Trump’s nomination of Lee Zeldin as the new Environmental Protection Agency administrator, who voted against the Inflation Reduction Act, which contains several major measures and credits that support biofuels.

Overall, market sentiment remains cautious, with participants waiting for clearer direction and end users showing limited demand.

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