Soy Oil Prices Climb with WTI Rally; Palm Oil Sells-Off on Indonesian Tax Hike

Edible oil prices were mixed on Thursday, with profit-taking and selling weighing on palm oil markets in Malaysia. However, soybean oil futures climbed thanks to fresh buying sparked in part by worries that Argentina will increase export taxes on soyoil and meal shipments to help curb inflation. A renewed rally in energy markets also supported gains in soybean oil markets. In Chicago, benchmark soybean oil futures closed 1.5 percent higher (May contract +108 basis points per pound), while deferred contracts were up 1.7 percent to 1.9 percent (July contract +129 basis points per pound). Argentina halted soybean oil and meal exports over the weekend, a move that usually occurs before a tax levy is implemented. In addition, Brent and West Texas Intermediate (WTI) crude oil futures both surged back over $100 per barrel due to a weaker U.S. dollar, waning hopes for a…