Vegetable Oil Prices Extend Higher on U.S. Hot Weather Concerns

Vegetable oil prices extended higher on Monday, as worries of tight stocks and a slowdown in production lifted palm oil futures while fund oil/meal spreading supported soybean oil prices. Nearby soy oil futures moved off initial lows that were driven by overnight weather forecasts for slightly cooler temperatures and increased rain in the Midwest growing region. However, the noon GFS weather model run again showed generally hot and dry conditions for much of the western Corn Belt and the Prairies this week. High temperatures in the eastern Dakotas, southwestern Minnesota, Missouri, and Kansas will range from 95 degrees to 105 degrees through July 29. Although a greater chance of rainfall is eyed for the central/southwestern Midwest and the central Plains, soybean oil futures climbed as the overall bullish weather outlooks stoked worries over canola and soybean crop development, the latter of which continues to…