World vegetable oil prices surged out of the gate on Monday. Palm oil and soybean oil futures rallied, with gains driven by stronger energy prices, worries of dry weather in the U.S. Midwest this week, and rising tensions in the Black Sea region following fresh attacks against ports and infrastructure along the Danube River in Ukraine.

On the CME, nearby August soybean oil futures settled at 71.99 cents per pound, up 259 basis points per pound, or 3.7 percent. December soybean oil futures closed at 64.74 cents per pound, increasing 194 basis points per pound, or 3.09 percent.

The USDA’s latest Crop Progress Report, released after the market close on Monday, showed 54 percent of the soy crop was rated at good, or excellent, condition as of the week ended July 23. This was down from 55 percent the week prior and 59 percent during the same week in 2022.

Longer-term forecasts showed increased chances of above average temperatures across most of the U.S. Corn…