Gains in Energy and Technically Driven Buying Lift Veg Oils

Technically driven trading, bargain buying, and gains in the energy complex helped lift vegetable oil markets to substantial gains on Tuesday. Despite the sharp increases in the futures market, basis levels in Argentina and Europe declined, suggesting physical demand may not be as strong as the move in the futures market implied. That said, export data from Malaysia indicates a recovery in demand for palm oil. If cargo surveyor data scheduled for release on Thursday suggests palm oil shipments are accelerating, the futures market may be foreshadowing a move higher in cash prices. Still, both markets face substantial resistance just above Tuesday’s close, so futures will need to break above those levels to confirm the start of a new leg higher.   

Nearby soybean oil futures jumped more than three percent…