Energy Rally Pushes Palm and Soy Oil to Multi-Year Highs

Vegetable oil prices rallied on Thursday on sharp gains in the energy complex and a rebound in oilseed prices. Oil/meal spreading by the funds also supported soybean oil. Thursday was the seventh consecutive day of gains in palm oil and the 15^th day in the last 19 that soybean oil prices rose. Once again, the gains lifted benchmark contracts in both markets to life-of-contract highs. The rally left the continuous most actively traded contract in palm oil to its highest level since it reached an all-time high in March 2008 of nearly 4,500 ringgit. The continuous most actively traded soybean oil contract reached its highest level since September 2012.

The moves pushed the spread between the May soybean oil and palm oil contracts back above 10 cents, but the July spread remained just below 11.5 cents. The…