Cargo Surveyor Data Drives Vegetable Oil Futures Higher

Vegetable oil futures were generally higher on Monday as overnight strength in palm oil prices triggered long oil share spreading by the funds during the U.S. session. However, due to similar moves in the soybean market, the liquidation of bull spreads limited the gains in the front end of the soybean oil curve. Bullish cargo surveyor data for April drove the rally in palm oil prices, lifting the benchmark contract to its largest single-day gain in 11 months. The rally left the benchmark soybean oil contract at a new life-of-contract high, while the benchmark palm oil contract settled just below the high set Wednesday.

Most soybean oil contracts rose more than two percent (December contract +120 basis points per pound) but settled well below overnight highs. Nearby contracts gained more than one percent (July contract…