Soybean Oil Falls Sharply Ahead of Holiday Weekend

Soybean oil futures dropped sharply on Friday as profit-taking ahead of the long holiday weekend triggered technically-driven selling to drive prices just above the upper end of the recent trading range. Nearby futures contracts fell by about 1 3/4 percent (July contract -47 basis points per pound), but losses in deferred contracts were smaller with late 2021 contracts down less than one percent. The liquidation of long oil share positions by speculators contributed to the weakness as soybean meal prices rose by more than 1/2 percent despite basically unchanged soybean prices.

Whether soybean oil will revert into the recent trading range or the decline of the last two sessions will be reversed will depend, in part, on the direction of crude oil. Crude oil futures have continued to move higher relative to soybean oil…