Fund Buying Drives Soybean Oil Futures Above 38 Cents

Soybean oil futures rose sharply on Wednesday as funds added to long oil share positions despite further gains in soybean prices. Overnight strength in palm oil prices on concerns about falling production in Malaysia and strength in energy futures contributed to the rally in soybean oil. The latest data from the Commodities Futures Trading Commission’s (CFTC’s) Commitment of Traders report indicated on November 10, managed money traders’ net long oil share futures and options position was 13,300 contracts. The total was more than 9,000 contracts above the prior week and the highest total since the week ending September 29. However, it was well below the recent peak of more than 81,400 contracts on August 11.

A liquidation of funds net long soybean oil futures and options position did not drive most of the…