Weather Concerns for Corn-Belt Drive Soybean Oil Rally

Vegetable oil prices rose on Monday as concerns about U.S. soybean production drove buying in the soybean complex. Palm oil futures rallied on the strength of soybean oil and traders’ expectations that the Malaysian Palm Oil Board would report a reduction in palm oil inventories when it releases its monthly supply and demand data at the end of the week. Crude oil prices were also higher overnight but sold off during U.S. trading hours to settle just below unchanged. Traders in both markets will be looking ahead to data from the United States Department of Agriculture and MPOB at the end of the week to guide the short-term direction of the markets.

Soybean oil futures gained more than 1 1/2 percent (August contract +45 basis points per pound) but settled about 1/2 percent off the high of the day as late session…