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Soybean oil hit a new high of 57.47 cents per pound before crashing to back-to-back limit-down days, with the nearby May contract closing at 52.48 cents. Concerns over European COVID-19 lockdowns, speculative positioning ahead of the acreage report, and volatile energy markets weighed on the complex, while the Ever Given blockage in the Suez Canal added shipping uncertainty.
Soyoil's sharp reversal reflects speculative liquidation rather than a change in biofuel demand, which remains strong. Lower veg oil prices reduce the cost pressure on soybean meal and feed fats.
mckeany-flavell.comEric ThorntonMar 29, 2021Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Directly describes soybean oil's back-to-back limit-down crash from a contract high, driven by COVID lockdown worries, pre-acreage-report position squaring and volatile energy markets.
Describes soybean oil reversing from a contract high into back-to-back limit-down days, driven by European lockdown fears, pre-acreage-report positioning and energy volatility, which directly explains the drop.
