Soy Oil Rises to Highest Level Since 2008, Palm Oil Weaker

Vegetable oil prices were mixed as growing concerns about the coronavirus outbreak in India weighed on palm oil prices. In contrast, soybean oil prices continued to move higher on the expectations for surging demand from the biofuel industry and rising basis levels. Concerns about early-season planting conditions also supported sharp gains across most of the oilseed complex, adding to the bullish tone in the soybean oil market.

The benchmark soybean oil contract surged by 3 1/2 percent (July contract +211 basis points per pound), but gains in the rest of the curve were more modest, with deferred contracts rising two percent or more (December contract +107 basis points). Selling above the 61-cent level limited the advance in the benchmark contract, which settled at its highest price since July 2008. With the nearby…