Vegetable Oil Rally Sets Fresh Life-of-Contract Highs

Weather concerns continued to drive buying across the oilseed complex on Thursday. The rally left the benchmark contracts for palm oil and soybean oil at fresh life-of-contract highs. The benchmark soybean oil contract has rallied 20 percent since testing the 50-day moving average on April 12. The benchmark palm oil contract has jumped more than 16 percent after trading below its 50-day moving average on the same day. In addition to the concerns about early-season planting conditions in the Corn Belt, bullish World vegetable oil fundamentals and rising cash prices have also contributed to the buying.

The United States Department of Agriculture (USDA) released its weekly Export Sales report for the week ending April 15 on Thursday. USDA reported soybean oil sales totaled 5,700 tonnes, up from last week’s net…