Palm Oil Jumps to Life-of-Contract High on Soy Oil Strength

Vegetable oil prices were mixed on Tuesday, with palm oil prices rallying on overnight strength in soybean oil futures. However, the soybean oil market settled lower after a volatile session that saw the nearby contracts locked limit up just before the U.S. opening. However, bearish crop progress data triggered liquidation in soybean futures, weighing on soybean oil prices. Still, the nearby soybean oil contract settled nearly two percent higher, indicating profit-taking by funds drove the volatility and ultimately weakness in deferred contracts.

Most soybean oil contracts declined by about one percent (December contract -68 basis points per pound), but the benchmark contract settled just below unchanged. The decline left the benchmark contract just below the 61-cent level and the upper Bollinger band after it…