Soybean Oil Prices Swept Higher by Surging Bean Complex

Giving back early losses, U.S. soybean oil futures prices advanced on Tuesday, as values were swept higher by an ongoing rally in soy meal and soybean values. Soybean futures closed about 2 1/2 percent higher after breaching the key $15 per bushel level, while soybean meal prices climbed four percent. Worries of crop production losses from South America due to hot and dry weather in areas of Brazil and Argentina in January drove market gains again.

The most heavily traded soybean oil contract closed 1.6 percent higher below 66 cents (March contract +101 basis points per pound). May soybean oil futures gained 1.5 percent (+94 basis points per pound). Contracts for delivery later this year ended 1.2 percent to 1.4 percent up on bull spreading (December contract +80 basis points per pound).  

West Texas Intermediate (WTI) crude oil futures backed off a fresh seven-year high to finish…