Soybean Oil Prices Decline Despite Rally in Crude

World vegetable oil prices were mixed on Thursday with palm oil rising while soybean oil ignored rising crude oil prices and settled modestly lower. Meal/oil spreading drove the weakness in soybean oil and was strong enough for traders to ignore nearby crude futures rising more than two percent. Rising vegetable oil prices in China remain the focus for palm oil traders as soybean oil and palm oil futures both added to gains posted on Wednesday.

Vegetable oil prices remain relatively low in China, but tight stock levels are starting to drive prices higher. Traders expect the fundamental situation in China to drive palm oil export demand, which has likely contributed to the sharp rise in Malaysian shipments during the first half of May. It is unlikely China will purchase U.S. soybean oil to build its stocks. However, the…