Declining Cash Prices Weigh on World Vegetable Oil Markets

World vegetable oil moved lower on Friday as falling cash prices outweighed gains on the Dalian exchange. Weakness in crude oil prices during the overnight session and again during U.S. trading hours also contributed to the bearish tone.

Soybean oil futures fell by 1/2 percent or less (December contract -11 basis points per pound). Weakness in the soybean complex and light fund spreading also weighed on prices. However, buying below the five-day exponential and 10-day moving averages limited the decline. Traders will look forward to the monthly supply and demand data from the National Oilseed Processors Association (NOPA), scheduled for release on Monday at 11 a.m. (CDT), for the next fundamental influence on prices. If NOPA reports larger-than-expected soybean oil stocks, the benchmark December contract could…