Crude Oil Gains Contribute to Rally in Vegetable Oil Futures

Vegetable oil prices rose sharply on Friday as gains in crude oil and a sharp increase in Chinese prices drove buying. The gains left palm oil and soybean oil futures at the highest levels since prices bottomed following the coronavirus pandemic. Crude oil prices were supported by members of the Organization of Petroleum Exporting Countries (OPEC) promising to meet supply reduction commitments. The announcement, plus the continued recovery of demand from the coronavirus lows, helped West Texas Intermediate futures trade more than $1 per barrel higher before selling late in the morning driven by weakness in equities, erased the overnight rally. However, prices recovered in the afternoon and settled at the highest level since March 6.

Soybean oil futures rose more than 1 1/2 percent (July contract +46 basis…