Overhead Resistance Limits Gains in Vegetable Oil Prices

Vegetable oil prices were mostly higher on Wednesday despite some weakness in crude oil prices. During U.S. trading hours, crude oil prices rose from early lows following the release of moderately bullish data from the Energy Information Administration. The move higher helped lift soybean oil from early lows, but selling in crude oil futures after the initial rally contributed to late-session weakness in soybean oil futures.

Soybean oil futures gained almost 1/2 percent (July contract +11 basis points per pound) but settled about 1/2 percent below the high of the day. It was the second consecutive day featuring selling late in the session, which limited gains. Futures remain supported by buying below the five-day exponential and 10-day moving averages, but prices have been unable to sustain moves above the recent…