Soybean oil futures in Chicago surged to their highest level in more than two years on Monday, climbing as much as 3.9% after crude oil prices spiked following US and Israeli strikes against Iran over the weekend. The most-active contract remains on track for a sixth consecutive gain. Higher crude prices typically boost demand for alternatives like biodiesel, increasing vegetable oil usage. Joe Davis, director at Futures International LLC, noted the crude price surge acts as a magnet for soybean oil demand this week. Crude prices pared some of their largest gains in four years as markets reacted to the conflict, with the Strait of Hormuz facing potential disruptions. This market turmoil underscores the tight link between energy and agricultural commodity prices.

China announced a 5.9% anti-dumping duty on Canadian rapeseed imports starting March 1, significantly lower than preliminary levels proposed last year. This move follows Beijing's announcement to drop tariffs on Canadian rapeseed meal after Prime Minister Mark Carney's January visit. The duty reduction aims to stabilize domestic canola supplies amid global market volatility.

The soybean oil rally reflects broader market anxiety over supply chain disruptions and energy costs. Traders anticipate sustained pressure on vegetable oil prices due to the crude oil surge and geopolitical risks. The 3.9% Monday gain highlights immediate investor concern, though analysts caution about potential volatility as the situation in the Middle East evolves.