Commodities
Soybean Oil Prices Rally as Demand Surges
The soybean oil market is showing strong support after December's price held above 64 cents and formed a higher weekly high.
Demand for soybean oil remains robust, with the Energy Information Administration (EIA) reporting a record-high increase in biofuel production in May. The data showed that soybean oil use in biofuel production rose by 17.2% to 1.434 billion pounds, up from 1.224 billion pounds in April.
China's interest in US soybeans is also adding support to the market, and managed money is long on soybean oil futures and options, with a position of 80,000 contracts.