May soyoil futures on the Chicago Board of Trade rose to a high of 33 cents per pound Thursday.. the highest for a nearby contract in nearly three years.
Those nearby soyoil futures have appreciated more than 10% over the last three weeks. According to this AP story in the Houston Chronicle, the rise has been fueled by the jump in price for crude oil:
The resurrected crude oil market has reignited index fund buying in soyoil, said John Kleist, senior analyst with Top Third Ag Marketing in Chicago. Soyoil’s link to biodiesel is boosting it much like corn has been boosted by ethanol prices, he added.
The strength of petroleum prices has reignited confidence in the idea that usage of soyoil for biodiesel will increase, said Anne Frick, senior oilseed analyst with Prudential Financial in New York.
Tensions in the Middle East, particularly involving Iran, have fueled crude oil rallies recently and soyoil’s recent gains have coincided with those price moves, analysts said.