# Soybean oil prices crash to finish the week - McKeany-Flavell

> 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.

- Date: 2021-03-29 · published 2021-03-29T12:00:00.000Z
- Category: market · region Global · magnitude medium
- Page: https://feedsoft.ai/events/12660-soybean-oil-prices-crash-to-finish-the-week-mckeany-flavell
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

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.

## Read by commodity

- SBO: bearish ▼
- SOY: bearish ▼
- WTI: neutral

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| SBO | 2021-03-29 | 1 | -5.2% | -4.0 | 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. |
| SBO | 2021-03-29 | 5 | -8.3% | -3.0 | 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. |

## Sources

- mckeany-flavell.com: https://www.mckeany-flavell.com/soybean-oil-prices-crash-to-finish-the-week-03-29-21/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.