Fund Profit-Taking in Oil Share Weighs on Soybean Oil

Vegetable oil futures were mixed on Monday as profit-taking in long oil share positions weighed on soybean oil futures despite a rally in nearby soybean contracts. Weakness in energy prices during the U.S. session also contributed to the bearish tone. However, overnight strength in energy prices and continued concerns about tight inventories ahead of a rebound in export demand drove palm oil prices higher. The ninth consecutive day for the palm oil rally extended the longest streak of gains in almost two decades.

The rally in palm oil and decline in soybean oil prices narrowed the spread between the May soybean oil and palm oil contracts to 9.48 cents per pound. The lowest level since March 4, when the spread tested 10 cents for the first time but settled just above nine cents. The spread between July contracts dropped…