Vegetable Oil Prices Continue to Move Lower

A reversal in crude oil prices and concerns about the acceleration of the coronavirus epidemic continued to weigh on world vegetable oil prices on Friday. Announcements of restrictions on restaurants in Texas and Florida contributed to the sense that the recovery in economic activity in the U.S. may have peaked, at least in the short term. Economic pessimism also contributed to weakness in crude oil prices, which declined by more than one percent. If the spread of the pandemic continues to accelerate, concerns about the weaker-than-expected economic activity are likely to weigh on world vegetable oil prices in the short term.

Soybean oil futures fell by about 1 1/4 percent (July contract -34 basis points per pound) to settle at the lowest level since May 22. Prices fell each day this week for a weekly decline of 132 basis…