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CME Group research notes that soybean oil prices peaked on November 9, 2017, and fell about 10% before crude oil peaked in late January 2018. The authors describe this as the eleventh episode since 2005 in which soybean oil led crude oil.
WTI rose from $42 to $66 per barrel between June 2017 and January 2018 while soybean oil did not follow.
Soybean oil's lead over crude is a signal for biofuel-linked demand, which feeds into soybean crush economics and meal supply. Traders watching this relationship may read the soybean oil weakness as a warning for energy prices.
cmegroup.comMar 1, 2018Not 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.
