U.S. Soybean Oil Futures Chase Palm Oil Markets Lower

Vegetable oil prices ended down on Friday, with U.S. soybean oil futures following palm oil lower, as funds booked profits and liquated long positions before the weekend. Paring early gains, Malaysian palm oil futures turned lower on expectations that upcoming monthly supply and demand data will show a drop in both output and exports in July. Benchmark palm oil futures settled 1.3 percent lower (October contract -58 ringgit per tonne) after approaching record highs this week due to a weaker ringgit, tighter supply, and worries of tepid third-quarter output due to unresolved labor shortages and Covid-19 restrictions in Malaysia. However, palm oil futures advanced for a sixth straight week, with the benchmark contract gaining more than two percent since July 23. Considering the market’s overall bullish fundamentals, upside pressure is likely to resume next week. Deferred contracts for winter/spring 2022 lost as much as 1…