US Sell-Off Drives March Palm Oil to Parity with Soybean Oil

Vegetable oil futures moved in opposite directions on the first trading day of the year, with soybean oil values marginally lower while palm oil futures rallied sharply. A broad sell-off in the U.S. equity market triggered profit-taking in commodity markets during U.S. trading hours resulting in the weakness in soybean oil values. The profit-taking followed sharply higher overnight prices, which drove West Texas Intermediate (WTI) futures down to more than $1.15 per barrel lower for the day from overnight gains of more than $1.25 per barrel that pushed the benchmark contract close to the psychologically critical $50 per barrel level. While Asian markets settled substantially higher, the weakness in U.S. markets will likely weigh on Asian commodity markets during Tuesday’s trading.

…