Vegetable Oil Decline Resumes Ahead of Key USDA Data

Vegetable oil markets continued to move sharply lower on Tuesday, which is uncharacteristic on the day before a significant United States Department of Agriculture (USDA) report. Sharply lower pal oil prices in the overnight market set the tone, but the sharp decline in soybean oil futures did not occur until the middle of the U.S. session. The drop left the prompt soybean oil contract locked limit-down for the third time in the last four sessions. Beyond the sharp move in soybean oil futures, the most interesting market development was substantial declines in soybean and other oilseed markets ahead of the critical USDA data. Anecdotal reports suggesting U.S. buyers are booking Argentine soybean oil cargos continue to be the most offered reason for the sharp correction in soybean oil futures. However, the broad liquidation on the day before one of the most…