Chicago Board of Trade front-month futures for soybean oil, the dominant feedstock for US-produced biodiesel, reached their lowest level in nearly eight months Thursday as weather forecasts raised market expectations of a large soybean crop this year.
The May soybean oil contract settled 46 points lower at 31.37 cents/lb, the lowest settle since 31.17 cents/lb on August 9.
The soybean complex, which includes futures for beans, bean oil and bean meal, has fallen substantial in recent sessions as reports continue to emerge that the South American soybean crop will be bigger than previously expected.
Adding downward pressure are reports released last week by the US Department of Agriculture that showed an increase in soybean acreage for the 2017 US crop and higher endings stocks of soybeans last month.
