Vegetable Oil Markets Fall Ahead of Critical Reports

Vegetable oil prices were lower Wednesday, with expectations that the Malaysian Palm Oil Board (MPOB) will report an increase in monthly palm oil stocks on Thursday, continuing to weigh on palm oil prices. Soybean oil futures also declined, with weakness in soybean prices ahead of the Thursday release of key monthly supply and demand data from the United States Department of Agriculture helping drive losses.

Peaking shortly after the market open but failing to crack resistance at the 73-cent mark, benchmark soybean oil futures moved lower on selling, ending the session down 2/3 percent (July contract -49 basis points per pound). Liquidation of bull spreads drove sharper losses in deferred contracts (July 2022 contract -85 basis points).

Weather forecasts show…