BOPO (Bean Oil Vs CPO) in metric tons went nearly negative today as soft oil pressure is strong in Asia with large volumes of SFO from Russia making its way to SEA, particularly to India. Sanctions in EU is forcing Russian SFO to move east as Russia Sunflower oil crushing increased to 7.2 Mil MT this Sep/Jul24 Vs last year 6.1 Mil MT. Also strong rumors from India that they will impose 20% duty on Palm oil imports is also fueling this narrowing of the BOPO spread although Palm oil has yet to correct. In fact Dec CPO is showing 894.50 on screen while last year at same time it was showing 819. Bean oil in Metric Ton was $1397/mt last year and is now $889. This gives us all a pretty good idea of what the market thinks about soft oil supplies and demand. This writer believes that a major correction in CPO values is imminent that will enable further erosion of Soyoil ahead of US harvest. The normal relationship on screen between soyoil and CPO is normally +$50-100/mt.
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