Edible Oil Prices Climb on Rallying Crude Oil, Indonesia Export Talk

World vegetable oil prices advanced on Wednesday, as a weaker U.S. dollar, an ongoing rally in crude oil markets and gains in palm oil futures drove soybean oil prices in Chicago sharply higher. Benchmark soybean oil futures closed at a better-than-two-month high, up more than 2.8 percent above the significant 60-cent mark (March contract +168 basis points per pound). Contracts farther out along the forward curve in 2022 gained a similar amount in percentage terms (October contract +139 basis points per pound). With the price rally, spreads increased. The March soybean oil spread was up more than 13 1/2 percent to 2.83 cents, while the March/August spread jumped 24 percent to 0.83 cents. Although the weather has improved in South America, worries of crop damage in Brazil and Argentina should remain an upside price driver for the soybean complex. Regions of Brazil and Argentina finally saw…