Soybean Oil Futures Rise With Palm Oil Concerns

Soybean oil futures have risen the most in one day today not seen since late August in sympathy with palm oil speculation of declining output.  Soybean oil futures are currently trading at 41.90 cents per pound – 15 points from their high of the day, so far, but up 1.34 points for the day.

The countries of Indonesia & Malaysia – the world’s top suppliers of palm oil – are expected to have declining output this next month.  Much precipitation is anticipated there this next month, and may disrupt their harvests and ultimately reduce production estimated by as much as 15% to 20% this year.

Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, had this to say about the current soybean oil futures situation,Supply remains quite tight in soy oil market. This continues to lend support to prices.”  Craney added,However, demand will be watched a prices continue to trade in a sideways pattern looking for additional fundamental direction.”

Soybean oil futures trend is still technically down, but a “double-bottom” appears to clearly be in place.  Today’s strength in soybean oil futures may be the tell-tale sign of a fourth-coming change in trend, but more circumstances need to happen before I can confidently get long this market.


Comments are closed.

Free Report
Receive Actual Trading Statements, & a Special Insider Report: 5 Key Trading Foundation Points

Futures Trading Report

Please note that it
takes a minimum
of $10,000 to effectively
trade these portfolios!
*First Name:
*Last Name:
*Day Phone with
Area Code:


Follow Us on Twitter