Vegetable Oil Prices Mixed; Supply Worries Boost Palm Oil Futures

On Monday, global vegetable oil prices were mixed. Palm oil prices climbed more than one percent due to ongoing supply worries, while soybean oil pared early gains to end modestly lower on profit taking and liquidation following the release of monthly supply and demand data. Nearby soybean oil futures (September contract -43 basis points per pound) and benchmark futures (December contract -34 basis points per pound) both fell less than one percent. Losses were slightly smaller for contracts along the forward end of the curve (May 2022 contract -26 basis points per pound).

Soybean oil futures initially advanced alongside strength in the soy complex that was driven by increased soybean export demand from China as well as supportive weather forecasts. Most of the Midwest growing region is expected to be hot and dry this week, which could cause further crop stress.

August is one of…