Rally in Crude Lifts Soybean Oil Prices

Vegetable oil prices were mixed on Monday as overnight weakness in crude oil weighed on palm oil prices. However, crude oil rallied sharply during U.S. trading hours to reverse an early decline in soybean oil futures. Crude oil futures rallied as in some of the states experiencing a resurgence in the coronavirus pandemic, the acceleration in the number of new cases slowed. It is difficult to know whether the data released Monday represents a real change in the trend or is simply due to the well-known lag in reporting that has typically occurred on Sunday. Data on Tuesday should settle the issue and guide the direction of crude oil and vegetable oil prices in the coming weeks.

Soybean oil futures gained 1 1/2 percent or less (July contract +42 basis points per pound) as a late-session sell-off limited the advance. Buying at the…