Soybean Oil Futures Jump on Weather Rally in Soy Complex

Vegetable oil prices continued to rally on Thursday, with soybean oil prices jumping sharply on strong gains in soybean futures and fund spreading. Palm oil continued to follow soybean oil higher despite a bearish fundamental outlook. The strength in soybean oil also triggered a fresh rally in vegetable oil futures on the Dalian exchange. The gains on the Dalian exchange outpaced the Chinese cash markets were palm oil prices have held steady at lower levels while soybean oil prices have advanced, but remain close to the recent high set last week.

Soybean oil prices gained about three percent (December contract +97 basis points per pound) to settle at a fresh post-pandemic high and the highest level since late January. However, selling above the psychologically important 33.5-cent level in the benchmark December…