Global vegetable oil prices were down sharply on Monday, as fresh selling and the liquidation of long positions weighed on palm and soybean oil futures. Participants unwound length due, in part, to easing worries over the Black Sea grain corridor and revised weather forecasts that showed expectations for cooler temperatures and increased chances for rain across the Midwest Corn Belt through August 9. Any precipitation will help alleviate concerns about further heat stress to maturing crops.

Peak pod development takes place in August, with 41 percent of the country’s soybean crops having already set pods, according to the USDA’s latest Crop Progress Report, released after the market close on Monday. USDA also showed 52 percent of the U.S. soybean crop was rated at good, or excellent, condition as of the week ended July 30. This was down from 54 percent the week prior and 60 percent during the same week in 2022.

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