Soy Oil Extends Selloff on Canadian Rapeseed Competition Woes

(Bloomberg) -- Soybean oil futures slumped to a two-week low as a broader selloff in commodity markets added to woes about increased supplies of Canadian rapeseed oil into the US.

Contracts for December delivery of the feedstock used in cooking oil and biofuel dropped as much as 3.9%, the biggest loss among main US-traded commodities, to the lowest since Aug. 23 in Chicago. The futures were on track for a 5.8% loss this week.

China has initiated an anti-dumping probe into imports of Canadian rapeseed, which is also crushed into oil for cooking and fuel, raising fears that some supplies may be redirected into the US market and compete with the soybean byproduct. Oilseeds in general have been under pressure this year, with global supplies expanding faster than demand.

Most commodities slumped Friday as a weak US jobs report added to concerns about an economic slowdown.

Soybeans futures fell as much as 1.7%, snapping five straight days of gains.