Soybean Oil Rallies after USDA Data Despite Drop in Palm Oil

Vegetable oil markets were mixed as weak cargo surveyor data weighed on prices ahead of the United States Department of Agriculture’s (USDA’s) monthly World Agricultural Supply and Demand Estimates (WASDE) report. The bullish outlook for soybean futures erased a substantial decline in soybean oil prices to leave nearby contracts unchanged, while the balance of 2021 contracts posted marginal gains.

The relative performance of the markets drove the spread between the March soybean oil and palm oil contracts above one cent for the second time in 2021 and left the spread at its highest level since December 31. Cargo surveyor data stoked continued to stoke fears of a sharp decline in Malaysian palm oil exports in January, which may continue to weigh on prices. The slowdown in exports has been due,…