Soybean Oil Sets Life-of-Contract Highs after Long Weekend

Soybean oil prices soared on Tuesday as the market tried to play catch-up to the four percent gains posted by palm oil on Monday. By the end of the day, nearby contracts jumped more than 2 1/2 percent (May contract +121 basis points) but spreading limited gains in contracts with 2022 deliveries to less than 2 1/4 percent (January 2022 contract +90 basis points). On Tuesday, palm oil futures were mixed, with nearby contracts rising slightly (May contract +11 basis points) while deferred contracts dropped by about one percent (January contract -34 basis points). Despite the two markets’ relative performance on Tuesday, the spread between May contracts dropped below seven cents but rose less than 1/4 cent from Thursday, which was the last day both markets were open on the same day.

The rally in soybean oil futures left…