Soy Oil Rallies on Prospect for Indonesia, China Trade Spat

Soybean oil futures traded in Chicago are seeing the biggest two-day rally in more than a year amid speculation that China may boost imports of the commodity as a result of a trade spat with Indonesia.

Reports that Indonesia is preparing to impose tariffs and use other means to protect its textile industry from imports from China is spurring concerns about potential retaliatory action from Beijing.

“Anti-dumping measures may lead to Chinese retaliation by boycotting Indonesian imports,” including palm oil, according to Victor Martins, Latin America risk manager for Amius Ltd. “China is the biggest buyer of palm oil in ...