Palm Oil Futures Test Critical 3,000-Ringgit Level

Vegetable oil prices were mixed on Thursday as palm oil prices rallied on the strength in soybean oil prices on Wednesday, but profit-taking in long oil share positions kept soybean oil futures on both sides of unchanged. Another sharp rally in crude oil prices, which jumped more than two percent, contributed to the gains in palm oil. The rally in West Texas Intermediate (WTI) futures left the benchmark October contract above $41 per barrel. WTI prices have jumped more than 13 1/2 percent since setting a bottom on September 8, while soybean oil futures have gained a little more than 5 1/2 percent, suggesting a substantial improvement in profitability for biodiesel producers.

Soybean oil futures were narrowly mixed, with most contracts gaining or declining by less than 0.1 percent (December contract -5 basis points per…