Soybean Oil Hits Two-Year High as Crude Rallies After Strikes on Iran

Soybean oil surged to its highest level in more than two years, tracking a rally in crude oil prices following weekend strikes by the United States and Israel on Iran.

Chicago futures climbed as much as 3.9% on Monday before paring some of the gains, though the most-active contract remained on track for a sixth consecutive session of gains. Higher crude oil prices typically make other fuel sources such as biodiesel more attractive, boosting demand for vegetable oils.

"It's going to be like a magnet with crude oil this week following the attacks in Iran," said Joe Davis, director at brokerage Futures International LLC.

Crude oil surged sharply before paring its biggest jump in four years, as the US-Israel war against Iran plunged the oil market into turmoil, stoking fears of a prolonged disruption at the Strait of Hormuz.

Separately, Beijing said over the weekend it would impose anti-dumping duties of 5.9% on Canadian rapeseed imports starting 1 March, far below the preliminary levels announced last year. The move follows China's announcement on Friday that it would scrap tariffs on Canadian rapeseed meal, after Prime Minister Mark Carney's visit in January.

Prices:

• Soybean oil for May delivery rose 1.8% to 62.98 cents a pound as of 11:01am Singapore time, after posting the biggest gain for a most-active contract since August 2023.
• Benchmark palm oil futures traded in Kuala Lumpur jumped as much as 1.1% to 4,086 ringgit a tonne.
• Soybeans in Chicago were little changed.
• Wheat and corn also held steady.

Source: Bloomberg