Soybean Oil Futures Mixed Despite Sharp Drop In Soybean Price

The palm oil market was closed on Thursday, leaving soybean oil traders on their own. Without the palm oil market’s overnight influence, soybean oil relied partially on soybean futures. However, when soybean prices plummeted shortly after the U.S. opening, soybean oil held close to unchanged. Bull spreading within soybean oil curve and oil/meal spreading by funds left soybean oil futures mixed with nearby contracts gaining about 1/4 percent (March contract +13 basis points) and deferred contracts down less than 1/4 percent (December contract -3 basis points).

At this point, it is clear that a combination of robust demand, particularly from the export market and weak crush margins, has left the market short of nearby soybean oil…