Palm Oil Futures Jump on Strength in Chinese Market

Vegetable oil prices were mixed on Friday with palm oil continuing to rally sharply while nearby soybean oil futures rose, and deferred contracts fell. Overnight strength in crude oil prices supported the gains in palm oil, but weakness during the U.S. session left the price of West Texas Intermediate (WTI) futures just marginally higher for the day.

Nearby soybean oil futures rose by nearly one percent (December contract +28 basis points per pound), but deferred contracts fell by as much as 3/4 percent (December 2021 contract -25 basis points). Strength in nearby soybean futures helped support soybean oil values, but fund liquidation of long oil share positions limited the advance. Selling above the upper Bollinger band also weighed on prices, while buying at the five-day exponential moving average limited weakness…