Potential Strike in Argentina Roils Soybean Oil Market

World vegetable oil prices were mixed on Tuesday, with nearby soybean oil contracts continuing to rally on concerns about Argentina’s short-term supply disruptions. Palm oil rose on overnight strength in soybean oil futures. However, late-session selling left deferred soybean oil contracts narrowly mixed after trading sharply higher for most of the day. The selling drove the spread between the May soybean oil and palm oil contracts lower, but only marginally, as it still settled above 12 cents, after trading above 13 cents in the overnight session. The July spread also fell to just above 12 cents.

Contributing to the weakness in soybean oil was a collapse in crude oil prices, which left nearby West Texas Intermediate (WTI) contracts down more than five percent. Concerns about a resurgence in coronavirus infections in the…