BOGO drops on tempered soy optimism as gasoil remains the weak leg of the biodiesel trade despite backwardation
Soybean oil futures ended lower Thursday, with Dec CBOT bean oil down 1% to $1,094.6/mt, while ICE gasoil edged up $2.75 to $721.25/mt, tightening the Nov/Dec backwardation to +$19.50/mt and Nov/Apr to +$67.25/mt—both higher on the day by 8.3% and 5.1%. Yet despite this apparent firmness in the forward curve, gasoil remains the weak structural leg of the biodiesel trade. The price strength is almost entirely curve-driven, not demand-led. Industrial diesel offtake remains subdued, heating-oil cracks have flattened, and the recent rally owes more to speculative positioning and sanctions headlines than to genuine consumption recovery.
Want to read more?
Subscribe to globalbiodiesel.com to keep reading this exclusive post.
