Soybean oil futures have plummeted to prices not seen since 2002 and should be near a bottom in part by increasing palm oil demand increasing by importers in Europe, according to Oil World. Soybean oil futures reached new lows even today just below the .32c level.
The Hamburg research group claims in the first-half of this year, palm-oil imports from the EU rose to a record of just a little more than 3.33M metric tons – about 3% more than in the first-half of 2013. Oil World’s report delivers a belief in a “near-bottom” for the cooking oil because of low global stockpiles.
“Low soybean oil (futures)prices have caused an increase in European demand in the first half of 2014. We believe the low prices for year have either already occurred or will occur very shortly,” said Kevin Riordan, director of research at Capital Trading Group in Chicago, sharing his insight regarding the current soybean oil futures situation.
The trend for soybean oil futures is clearly down with no bottom yet in sight. I am compelled to continue taking each short trade until the overall soybean oil futures picture changes.
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