Soybean oil may be in for a boost in price very soon. The world’s top three palm oil producers in SE Asia claim “prices have the potential to rise” because of drought conditions in the growing areas of Thailand, Malaysia, and Indonesia.
The Hamburg, Germany research group “Oil World” stated in their report dry weather for the past two months has created moisture shortages for some plantings and water rationing. They also say continue dryness in the next two weeks may prompt “an even more bullish supply scenario” for the forthcoming year.
Christian Moreno, a commodities broker for HighGround Trading Group in Chicago, had this to say regarding the current soybean oil futures situation, “Oil share is getting hit again. The tightness in soybeans and soybean meal is leaking into the soybean oil.” Moreno added, “Expect soybean oil to move higher.”
Soybean oil’s trend is up despite the pull-back in price since the March 7th high. I am looking for buy signals in soybean oil as of this writing.
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