Bullish Data Drives Vegetable Oil Markets Higher

Vegetable oil futures jumped higher on Tuesday as continued strength in soybean futures and a sharp rally in crude oil prices triggered buying. Unlike Monday’s rally, soybean oil spreads also rallied, but profit-taking late in the session narrowed the gains. Palm oil spreads were mostly flat, but notable weakness in the November contract indicates some bull spreading by funds contributed to the rally in nearby contracts.

The spreads between soybean oil and palm oil were mixed, with the May and July spreads rising slightly, while the September spread declined modestly. The May spread increased to 9.58 cents but traded above 10 cents after testing the week’s low, around 8.5 cents, for the third time in the last four days. The July spread rose to 12.4 cents, while the September spread fell to 11.2 cents. The May spread may remain…