Soybean Oil Futures Plummet Amid US Strike Halt

The US pause in strikes against Iran led to a significant drop in soybean oil futures on Monday, July 27. The Chicago soybean oil contract fell by as much as 2.1%, its largest intraday decline since June 30.

This decline was largely due to the easing of fears about further escalation of the conflict, which had previously pushed up energy prices and grain and oilseed markets. Crude prices plummeted over 7% in the first few minutes of trading, briefly dipping below $90 a barrel.

Soybean oil and other vegetable oils often track crude prices because they are used to produce biofuels. The halt in strikes against Iran also led to declines in corn, soybeans, and canola futures.