Vegetable oil prices were higher on Monday, underpinned by solid gains in Chinese markets, a weaker ringgit, early strength in crude oil, and prospects for improving demand. Benchmark soybean oil markets recovered from marginal losses in early U.S. trading hours to end the session substantially higher as fund oil/meal spreading supported prices. The most actively traded soybean oil futures contract increased 1 1/5 percent (December contract +73 basis points per pound). Soybean oil contracts for 2022 were up less than one percent (May 2022 +43 basis points per pound), as U.S. harvest pressure weighed on the back end of the forward curve.

The pace of the soybean harvest picked up during the week ending October 11. In the Crop Progress report, released after the market close on Monday, the United States Department of Agriculture (USDA) reported that 60 percent of the U.S. soybean harvest was completed, up from 49 percent the week prior and the 55 percent five-year…