Vegetable oil prices advanced on Monday, as overnight strength on the Dalian and gains in crude oil and the wider commodities sector supported higher prices. West Texas Intermediate (WTI) and Brent crude oil futures pushed to fresh multi-year highs, as tight world stocks and rising fuel demand triggered buying. WTI rocketed to a seven-year high before gains were pared after China announced plans to reduce the share of fossil fuels in its energy mix by at least 20 percent by 2060. The January WTI contract settled unchanged at $83.76 per barrel.     

Soybean oil/meal spreading lifted benchmark soy oil futures 1.7 percent at the close (December contract +105 basis points per pound). The January 2022 contract rose 1.6 percent (+101 basis points per pound). Soybean oil contracts at the back end of the curve rose as much as 1.8 percent (July 2022 +106 basis points per pound).

Harvest pressure remains one of the biggest downside risks for the soybean oil…