Soybean Oil Prices Climb on Oil/Meal Spreading, Palm Oil Falls

Vegetable oil prices were mixed again on Tuesday, as palm oil futures declined for a third consecutive session, while soy oil values extended higher. Palm oil markets sold off due to weakness in rival oils in China and an improving production outlook. Fund oil/meal spreading continued in the U.S., with soy oil prices also tracking gains in crude oil prices. West Texas Intermediate (WTI) crude oil markets were initially lower after U.S. President Joe Biden confirmed the U.S. will release 50 million barrels of crude oil for sale from the Strategic Petroleum Reserve as part of a coordinated effort with other nations to help alleviate rising fuel prices. However, the market had been expecting the SPR announcement, and shortly before midday, WTI reversed course, with the January 2022 contract ending 2.3 percent higher (+$1.75 per barrel). The 50-million-barrel release will have a small impact on the…