Robust Export Demand Drives Soybean Oil Prices Higher

Soybean oil prices rallied again on Thursday as bullish export sales data triggered buying and reversed an overnight decline. Palm oil futures were lower on concerns about slowing export demand following bearish cargo surveyor data. The United States Department of Agriculture’s weekly Export Sales report featured a second consecutive week of robust sales with South Korean buyers the most active during the week ending November 12. The strong sales lifted export commitments to 361,100 tonnes, increasing nearly 18 percent (54,400 tonnes) from the same week last year. However, shipments fell to a marketing-year low of 2,800 tonnes, 77 percent below the four-week moving average. The relatively narrow spread between soybean oil and palm oil prices may account for the surge in sales during the last two weeks (133,100 tonnes). However, the spread…