Biodiesel Bulls Beware: Feedstock Glut Looms
Gasoil stayed soft, with Sep ICE NWE down $6.75/t to $653.25 and weakness across the curve. That slippage pushed BOGO to +$525/t, widening the gap between fossil and soft oils. The latest WASDE was broadly bearish for vegoils, underscoring the likelihood of a large global oilseeds crop ahead. While U.S. soybean ending stocks for 2025/26 were cut to 290m bu, soyoil carry-in and ending stocks rose by 50m lbs, and ample global oilseed supply projections weighed on sentiment. Soymeal rallied sharply, but soyoil’s bounce faded on softer crude and active product spreading.
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