(AgriMoney) … “That larger-than-expected lift [to the EPA target] fuelled ideas that already tight vegetable oil supply would become even tighter in 2017,” said Tobin Gorey at Commonwealth Bank of Australia.
At Chicago broker Futures International, Terry Reilly said that the soyoil rally “was directly related to market reaction after the EPA set 2017 mandates at a record for biofuels.
“The EPA was a surprise, especially as it was released a day before a major US holiday. It caught traders off guard.”
Kuala Lumpur palm oil earlier touched 3,098 ringgit a tonne, the highest for a spot contract in four years.
Dalian prices
Palm oil for January also gained 1.4% to 6,310 yuan a tonne on China’s Dalian exchange, having earlier touched a contract high of 6,496 yuan a tonne.
In fact, rival soyoil fared better on the Dalian, in rising by 2.9% to 7,026 ringgit a tonne for the best-traded May contract. READ MORE