Soybean Oil Remains Range-Bound Despite New Closing Highs

Soybean oil prices rallied on Monday on mostly technically driven trading ahead of the United States Department of Agriculture’s (USDA’s) monthly Fats and Oils report. Selling above the upper Bollinger band limited gains in the benchmark contract to about 3/4 percent, despite weakness in nearby soybean futures. A drop in soybean futures at the U.S. opening pushed prices to the lows of the day. Still, buying below the five-day exponential moving average limited the early decline and drove the benchmark contract to a fresh life-of-contract high. Despite the fresh high, prices have traded in the same range for the last four days, with solid support for the benchmark contract at the 44-cent level and resistance around 45.5 cents. In the short term, soybean oil prices are likely to remain well supported, but traders may wait until they know more…