Argentine Plant Explosion Could Drive Veg Oil Prices Higher

Vegetable oil prices were mixed on Wednesday, with nearby palm oil futures rising while deferred contracts and soybean oil prices fell. Follow-through buying from Tuesday’s bullish cargo surveyor data and strength in Chinese vegetable oil futures supported nearby palm oil prices, but weakness in crude oil prices and fund spreading weighed on soybean oil values. Crude oil prices were steady throughout the overnight session but fell sharply at the U.S. open to settle four percent lower (December contract -$1.67 per barrel). Despite the sharp decline, the benchmark West Texas Intermediate (WTI) December contract held the critical $40 per barrel level. A larger-than-expected build in U.S. gasoline inventories contributed to the decline in crude oil values.

Nearby soybean oil futures fell about 1/4 percent (December…