Soybean Oil Prices Hit Five-Week Low

Soybean Oil Prices Hit a Five-Week Low

Daily chart data for August futures indicate that prices are moving in a downward trend and have reached their lowest level in five weeks.

Technical indicators at the bottom of the chart show that the Moving Average Convergence Divergence (MACD) is in a bearish position, with the red MACD line below the blue signal line and both lines moving downward.

The chart also shows a bearish reversal head-and-shoulders pattern, strengthening the sellers’ position and supporting the possibility of further declines in the near term.

Fundamental Factors

• Favorable weather for soybean planting and growth across most of the US Midwest, with no threatening long-term weather forecasts for the crop, is putting downward pressure on the market.
• The US-China trade war remains a negative factor affecting US soybean oil exports.
• Speculators are also likely to unwind long soybean oil versus short soybean meal positions in the coming period.