Bio Policy Worry and Weather Extended Sell-Off in Veg Oils

Vegetable oil prices were down on Monday, with overnight selling in palm oil futures tracking the sharp declines in soybean oil futures on Friday. Soybean oil extended its June 11 sell-off triggered by reports that the U.S. Environmental Protection Agency is considering relaxing renewable fuel blending mandates to help insulate refiners from elevated RIN prices.

Ending well above (almost 4 percent) the session low of 63.50 cents per pound, nearby futures prices for soybean oil settled 1.5 percent lower on the session (July contract -102 basis points per pound). A change in the weather forecast, with outlooks calling for cooler temperatures and rainfall in the eastern and southern Midwest at week’s end, triggered additional selling in the soybean market on Monday adding to the pressure on deferred soybean oil prices….