Palm Oil Prices Rally, Soybean Oil Reverses Gains to End Slightly Lower

Global vegetable oil prices were mixed on Monday, with soybean oil futures in Chicago initially swept higher by surging palm oil futures in Asia. Palm oil prices rallied more than three percent on worries of potential production shortfalls due to ongoing labor shortages and additional flooding this past weekend in Peninsular Malaysia. Concerns over dry and hot weather in southern growing areas of Brazil and Argentina, combined with strength in crude oil futures also supported the early advance for soybean oil markets. However, soybean meal values surged nearly three percent, and the liquidation of long oil share positions pressured soybean oil prices in afternoon U.S. trading hours.

Benchmark soybean oil futures gave back their early gains and closed 1/5 percent lower (March 2022 contract -11 basis points per pound). Contracts at the back end of the curve ended with marginal…