Soybean Oil, Palm Oil Prices Rise alongside Crude Oil Rally

Edible oil prices were higher on Tuesday, with benchmark palm oil futures in Asia reversing early losses on short-covering, and soybean oil futures in the U.S. rising as funds shored up long positions. Crude oil markets advanced after Monday’s sell-off, with gains supported by heightened geopolitical tensions. This helped to boost soybeans and soybean oil futures prices.

The most heavily traded soybean futures contract ended almost 0.9 percent higher above the 62-cent level (March contract +54 basis points per pound). Contracts at the back end of the forward curve were up 0.95 percent to 1.3 percent (July contract +61 basis points per pound) due to the liquidation of bull spreads. The soybean market will continue to watch the weather in South America. Improved conditions, including rain for parts of Argentina and Brazil, are forecast for this week and could keep a lid on prices in the near…