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

hafvnjlpxdigov)x[iak7w[e_media_dl_1.png CMEArticle content(Bloomberg) — Soybean oil jumped to the highest level in more than two years, tracking crude prices higher after strikes by the US and Israel on Iran over the weekend.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentFutures in Chicago surged as much as 3.9% on Monday before paring some gains, though the most-active contract remains on track to advance for a sixth session. Benchmark palm oil prices in Kuala Lumpur climbed 1.6%. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThe rally in energy markets supported the move as higher crude prices usually make other fuel sources such as biodiesel more attractive and boost demand for vegetable oils.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“It will be like a magnet with crude oil this week following the attacks in Iran,” said Joe Davis, director at brokerage Futures International LLC, referring to soy oil prices.Article contentCrude spiked before paring the biggest surge in four years, with the US-Israeli war against Iran plunging the oil market into turmoil, triggering concerns about prolonged disruptions at the Strait of Hormuz. Article contentWhile the Middle East does not buy as much palm oil as India, China and the European Union, about a fifth of the tropical oil travels through the Strait of Hormuz, said Nirgunan Tiruchelvam, an analyst at Aletheia Capital. The escalation in conflict may not directly lead to cancellations of shipments as there are alternative routes, though they would take more time, he said. Article content“Vessels going to the Middle East are avoiding those routes or asking for expensive freight, which can increase vegetable oil prices for nations of the Gulf Cooperation Council and have an impact on trade flows into the region,” said Mayur Toshniwal, president and head of trading at Emami Agrotech Ltd., an Indian vegetable oil processor and biodiesel maker.Article contentThe GCC together with Afghanistan and Pakistan imports about 5 million tons of vegetable oils a year, Toshniwal said. The ongoing war in the region will keep these prices elevated, and trade volumes may be impacted for at least one to two months, he added. Article contentSeparately, Beijing said over the weekend it will impose a 5.9% anti-dumping duty on rapeseed imports from Canada from March 1, well below preliminary levels set last year. That followed an announcement by China on Friday that it would drop tariffs on Canadian rapeseed meal after Prime Minister Mark Carney’s visit in January.Article contentTrending The (high) opportunity cost of paying off your mortgage early Mortgages Trump Urges Iran Leadership Change as Report Points to Talks PMN Business What's at stake for oil markets as Trump strikes Iran Oil & Gas Stocks Drop, Oil and Gold Advance on Iran Crisis: Markets Wrap PMN Business Feds to invest millions in startup accelerator to boost Canadian defence and dual-use companies Innovation Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. The (high) opportunity cost of paying off your mortgage early Mortgages Trump Urges Iran Leadership Change as Report Points to Talks PMN Business What's at stake for oil markets as Trump strikes Iran Oil & Gas Stocks Drop, Oil and Gold Advance on Iran Crisis: Markets Wrap PMN Business Feds to invest millions in startup accelerator to boost Canadian defence and dual-use companies Innovation