Palm Oil Rally Sparks Gains in Soybean Oil Prices

Soybean oil prices jumped higher on Wednesday, support by sharp gains in palm oil futures and another day of increases in the rising soybean market. The rally lifted both soybean oil and palm oil futures to fresh life-of-contract highs, with the continuous most actively traded contracts rising to multi-year highs. Wednesday was the highest close for the benchmark soybean oil contract since 2014 and since 2012 for the benchmark palm oil contract.

Concerns about the availability of soybean oil in the export market due to Argentine port workers’ ongoing strike continues to support vegetable oil futures. The strike has driven soybean oil basis at the U.S. Gulf to 6 1/2 cents over, the highest level since at least 2013. However, interior basis levels remain well below multi-year highs. Central Illinois basis dropped 1/2 cent…