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 Brent declined $8.98, or 8.7%, to $94.62/b.

A Brazil-based soybean oil trader attributed the crude selloff partly to the outcome of the US midterm elections, saying market participants considered the possibility that Democratic control of Congress could constrain US military action and encourage negotiations aimed at ending the conflict with Iran.

Lower petroleum prices reduced support for vegetable oils used as biodiesel and renewable diesel feedstocks, transmitting weakness from the energy complex into soybean oil futures.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →