World Vegetable Oil Markets Mixed Ahead of Holiday Trading

World vegetable markets were mixed on Wednesday, but in the opposite direction from Tuesday with palm oil lower while soybean oil rallied. A resumption of the rally in crude oil helped support soybean oil while technical selling weighed on palm oil.

Soybean oil futures rose about one percent (July contract +27 basis points per pound) on the strength in crude oil and buying at the 5-day exponential moving average. However, technically driven selling at the upper Bollinger band limited the advance. The move erased the decline yesterday and left the most actively traded July contract at its highest level since April 9. If soybean oil futures continue to rally, the next level of resistance is likely to occur at the post-coronavirus high at 27.81, which is a little less than 1/2 cent above the…