Soybean Oil Prices Extend Gains after Palm Oil Surges to New High

Vegetable oil prices advanced on Thursday, as another record high close for palm oil futures and overnight strength in crude oil markets drove gains in the soybean oil market. Palm oil prices ended more than two percent higher at 5,444 ringgit (April contract +115 ringgit per tonne) after changes to Indonesia’s export policy went into effect. In an ongoing attempt to temper soaring cooking oil prices, Indonesia’s Ministry of Trade on Thursday said, effective immediately, exporters must earmark 20 percent of their palm oil shipments for the domestic market at capped price levels. The rule, which follows Indonesia’s requirement that exporters of crude palm oil, used cooking oil, and refined palm olein must obtain permits for the next six months, is expected to put a dent in Indonesia’s palm oil exports in February, market sources said.

The rally in palm oil prices, lower soybean…