Crude oil rout pressures South American soybean oil prices
South American soybean oil FOB prices declined Nov. 4 as a sharp selloff in crude oil weighed on Chicago Board of Trade soybean oil futures, pulling outright export values lower in Argentina and Brazil. NYMEX December West Texas Intermediate crude futures fell $7.97, or 8.3%, to settle at $88.12/b on Nov. 4, while ICE January ...
The decline in crude oil prices, particularly in West Texas Intermediate and Brent, has negatively impacted South American soybean oil prices, according to reports from Hellenic Shipping News. On November 4, crude oil futures fell by 8.3% and 8.7% respectively, reaching $88.12 per barrel and $94.62 per barrel. This energy market downturn has translated into weaker soybean oil futures, with the CBOT December contract settling at 63.53 cents per pound, a 2.7% decrease from the previous day.
The decline in crude oil prices has led to reduced support for vegetable oils used as biodiesel and renewable diesel feedstocks, transmitting weakness to soybean oil futures. Despite this, stronger export basis levels in Argentina and Brazil have partially mitigated the impact of the energy market weakness on South American soybean oil prices.
Brief written by urgent.news from Hellenic Shipping News's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
