Spreading Continues to Weigh on Soybean Oil Prices

World vegetable oil markets were mixed again on Thursday as continued concerns about supply shortfalls supported palm oil prices while spreading and pre-report positioning left soybean oil futures mixed. Overnight strength in crude oil also contributed to palm oil’s strength but could not drive substantial buying in the soybean oil market. West Texas Intermediate (WTI) futures settled about 3 1/2 percent higher (November contract +$1.35 per barrel), which left the benchmark contract back above the psychologically critical $40 per barrel level after setting just below that level on Wednesday.

Soybean oil futures were mixed, with nearby contracts marginally higher or lower (December contract -3 basis points per pound) and deferred prices rising by as much as 1/4 percent (October 2021 contract +10 basis points). Despite…