Vegetable Oil Prices Continue to Rally

World vegetable oil prices were higher on Tuesday as palm oil rose despite overnight weakness in crude oil. Soybean oil prices rallied as crude oil erased the overnight decline during U.S. hours. The rally helped lift soybean oil prices to modest gains, but the most actively traded July contract remained below the high set on Friday. With one day left to trade until a dump of data from the United States Department of Agriculture (USDA) and the Malaysian Palm Oil Board (MPOB), price moves are likely to remain muted on Wednesday. After the reports, the data will drive the short term price movement.

Soybean oil futures gained a little less than 1/2 percent (July contract +13 basis points per pound) on the support from crude oil and technically driven buying at the five-day exponential average. Soybean oil is in the upper end of The…