Vegetable Oil Prices Rally on Short Covering, Can it Last?
Vegetable oil prices rallied sharply on Tuesday as fund liquidation of short oil share positions, and bullish cargo surveyor data drove buying. Crude oil also rallied on optimism about the potential for agreement on a U.S. stimulus package, contributing to the bullish tone. The benchmark West Texas Intermediate (WTI) contract gained a little more than one percent to settle at its highest price since late August.
Soybean oil futures jumped nearly 2 1/2 percent (December contract 78 basis points per pound) and settled near the high of the day. The move left the December contract back above the psychologically important 33-cent level and above the 50-day moving average after falling below that level on Monday for the first time since October 2. While short-covering may have driven the move on Tuesday, vegetable oil fundamentals remain relatively bullish. In the…
12.27.2024
US RD, SAF supplies remain strong despite declining import volumes
US supplies of sustainable aviation fuel (SAF) fell sharply in November but reached the highest November volume on record, according to data released on Thursday December 26 by the...
12.27.2024
Animal fats and oils end week steady amid holiday-limited trades
The US animal fats and oils markets held steady on Friday December 27, with limited trades persisting due to the holiday season.
Weekly averages were unchanged from the prior week...
12.27.2024
Relative prices of US meat and bonemeal rise amid depressed soybean meal market: 2024 recap
US animal protein prices were steady to lower on Friday December 27. Some participants reported distressed loads in the market late in the afternoon of Thursday December 26 and...