Front-month soybean oil futures fall to lowest level in over six months


Chicago Board of Trade front-month soybean oil futures reached their lowest level in more than six months as weather forecasts have raised market expectations of a bumper crop this year.

The August soybean oil contract settled 75 points lower at 29.46 cents/lb, the lowest prompt-month settle since it reached 29.39 cents/lb on January 13. The August contract has fallen 1.6 cents in the last two sessions.

The soy complex has seen steep drops in recent weeks as forecasts call for more wet weather ideal that is for growing soybeans in the short-term. Rainy weather has been frequent in the last few weeks in the US Midwest.

On Monday, front-month soybean futures fell 22.75 cents to $9.8375/bushel and soybean meal fell $7.80 to $338.90/st.

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Front-month soybean oil futures reached its 2016 peak of 34.19 cents/lb on April 19. The drop in recent days has been aided by weakness in other vegetable oil markets worldwide and unseasonably high stocks of soybean oil.

Soybean oil is the major feedstock for US biodiesel fuel production.


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