World Vegetable Oil Prices Rally

World vegetable oil prices rallied on Friday as crude oil continued to move higher. A steady rally in crude oil prices and bargain hunting and technically-driven buying helped lift soybean oil and palm oil markets. Crude oil finished the week below the high set on Thursday, but traders remain more optimistic about growing energy demand as the world economy reopens from the coronavirus induced shutdown.

Soybean oil futures settled about one percent higher (July contract +28 basis points per pound). The rally drove the most actively traded July contract above the trendline formed by the highs set on April 13 and May 5, which negates the negative technical outlook highlighted in the commentary…