Chicago soybean oil futures have rallied since the start of 2026, culminating in a powerful Monday surge as global markets reacted to escalating geopolitical tensions in the Middle East.
Although quieter on Tuesday, the May soybean oil contract climbed to its highest level in more than two years to begin the week, driven in large part by a spike in crude oil prices following coordinated military strikes by the U.S. and Israel on Iran over the weekend. Rising energy prices typically lift soybean oil because of its role in biofuel production, making the vegetable oil more attractive when crude benchmarks strengthen.
With Brent crude and U.S. oil futures surging on fears of disruption to supplies through the Strait of Hormuz, traders have been quick to price soybean oil as a beneficiary of higher crude values.
Monday’s gains in soybean oil were significant, even as broader soybean futures offered just a mixed performance. While soybeans themselves have seen some support from spillover strength in the vegetable oils complex, grains markets are also grappling with pressure from record South American production and uncertain export demand.
The strength in soybean oil is also echoing into Canadian oilseed markets. Canola futures have been lifted by the broader vegetable oil rally, particularly as demand for alternative edible oils increases in a higher-energy-price environment. Higher soybean oil tends to underpin global vegetable oil values, which in turn prop up canola pricing.
May soybean oil: source - Barchart
