Technicals, Bargain Buying Boost Oversold Edible Oils Markets

Halting a string of down days, global vegetable oil prices moved higher on Thursday. Palm oil futures shaved follow through selling losses to end higher on technical buying. Oversold soybean oil also advanced on oil/meal fund spreading.

Short covering in very thin trade leading up to September 13 expiration lifted September soy oil futures 1 1/5 percent at settlement (+70 basis points per pound). Nearby soybean oil prices were up 1.3 percent (October contract +76 basis points per pound), while benchmark futures climbed almost 1 1/2 percent (December contract +85 basis points per pound). Gains for most deferred contracts for winter/spring 2022 ranged from 1 1/5 to 1 2/5 percent (January 2022 contract +83 basis points per pound). The September/January 2022 spread continued to decline, dropping 34 percent to 0.25 cents. In the last two sessions, the spread…