Soybean oil has catapulted higher in recent weeks, outpacing other agricultural markets. While wheat, corn, and soybeans have been quiet, soybean oil has sizzled higher by nearly 10% in the last few weeks.
Soy oil is gaining ground as its primary cooking rival, palm oil, is exploding in price. Palm oil is standing near a two-year high due to a strong El Niño damaging the palm oil crop in Indonesia and Malaysia. Palm oil is the main cooking oil used in Southeast Asia and is widely used in processed foods worldwide. High palm oil prices have prompted cooks to use cheaper soybean oil, increasing demand for the US product.
As of midday Friday, March soybean oil was worth 31.5 cents per pound.