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Beanoil coefficient Vs Gasoil is making new lows as US continues to heavily subsidize RD


RD is Renewable Diesel or HVO with at least 50% Green House Gas Savings made mostly from Soyoil (~60%) rest is waste animal fats.

With ICE gasoil hitting >60% volatility in options and Bean oil volatility only in the 30's we are seeing large Dec Bean oil Call option position as high as 85c/lbs with less than 29 days left. Fame values in Europe are trading weak at $100/MT below BOGO despite presumably high demand for gasoil ahead of Dec 5 sanctions implementation. Bean oil telling us Gasoil/Diesel going higher and with less than 20 days supplies in US, it makes sense. Perhaps tale of 2 cities as US going in totally different directions as long as US Govt pays the tab for HVO while in Europe consumers are decidedly cautious.

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