Biodiesel Demand Absorbs Record NOPA Crush as Soyoil Curve Inverts
The soyoil market is sending a strong forward signal and it is supported by hard data. NOPA reported March crush at 226.161 million bushels, up 16 percent year on year and the second highest monthly figure on record. At the same time, soyoil stocks came in at 2.039 billion pounds, below the average trade estimate of 2.173 billion. The curve has reacted accordingly. May July is now +0.31 cents per pound while July December has expanded to +4.72 cents per pound, equivalent to roughly $100 per metric ton. This structure reflects a clear incentive to pull supply forward and signals tightening availability into the second half of the year.
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