(July 27): Chicago soybean oil futures fell the most in a month on Monday as the US pause in strikes against Iran eased fears of further escalation, sending crude prices tumbling and pulling grain and oilseed markets lower.
The US halted its nearly two-week campaign of daily strikes over the weekend without explanation. Crude prices fell more than 7% in the first few minutes of the session, briefly dropping below US$90 a barrel.
Soybean oil and other vegetable oils often track crude because they are used to produce biofuels. Grain and oilseed futures had rallied through much of July as the Iran conflict lifted energy prices, while heat waves in Europe and escalating attacks between Russia and Ukraine fuelled concerns over global crop supplies.
The most-active Chicago soybean oil contract fell as much as 2.1%, the steepest intraday decline since June 30. Corn, soybeans, and canola also traded lower.
Prices:
- Soybean oil fell 2% to 70.54 cents a pound.
- Soybeans declined as well, down 1.1% to US$12.3925 a bushel.
- Corn was 1.3% lower at US$4.81 a bushel, while wheat was largely unchanged.
Uploaded by Arion Yeow