Vegetable Oil Prices Rally Despite Drop in Crude

World vegetable oil prices rallied on Wednesday despite profit-taking in crude oil futures. Palm oil futures traded for the first time in almost a week and rallied on bullish data while technically driven buying in soybean oil futures and spreading by funds contributed to the strength in soybean oil.

Soybean oil futures rose into the upper end of the new trading range and settled at the highest price since April 9, with contracts gaining more than one percent (July contract +33 basis points). Selling at the upper Bollinger band limited the advance, which left the most actively traded July contract just 40 basis points from the upper bound of the new trading range. If the July contract can breach the 28-cent level, there is little technical resistance until it reaches 30 cents. The Jacobsen believes soybean oil futures…