Soybean Rally Pushes Soybean Oil to New Highs

Vegetable oil prices were sharply higher on Tuesday as overnight gains in energy prices and bullish cargo surveyor data combined with the continued rally in soybean futures to lift the sector. The rally drove the benchmark soybean oil contract to a new life-of-contract high, while the benchmark palm oil contract settled above 3,800 ringgit for the first time since March 23.

Soybean oil prices continued to rally despite a sharp sell-off in energy prices during U.S. trading hours, as concerns about cold weather in the Corn Belt causing planting delays drove soybean prices higher. The benchmark soybean oil contract gained about 2 1/2 percent (July contract +127 basis points per pound). However, gains in deferred contracts were smaller as bull spreading by funds again pressured the back end of the soybean oil curve (December contract…