Gains in Soybean Futures Support Nearby Soybean Oil Prices

Vegetable oil prices were generally mixed on Friday as a breakout above the recent trading range in vegetable oil futures on the Dalian exchange sparked hope for short-term demand and triggered bull spreading in both palm oil and soybean oil markets. A sharp rally in wheat futures also drove buying across agricultural commodity markets, lending support for soybean oil prices. Energy futures were modestly lower on profit-taking after Thursday’s sharp rally. The move pushed the spread between soybean oil and heating oil (HOBO) modestly higher, but it remains in the relatively narrow range around $1.45 per gallon it has been trading in for the last two weeks.