Usually when Gasoil drops below its 200day, we can see scope for another $200/mt move below it - my target is $500/mt. What we are seeing at same time as a drop in futures is a drop in premiums across the board especially in Europe. Same thing is happening with Bean oil which is usually a leading indicator as it is now trading already 4 c/lbs below its 200wdma which is greater than what we see in Gasoil. Therefore, my feeling is that bean oil is still susceptible to another 4-5cents drop considering what we are seeing in Paranagua Soyoil premium that are still 120 points appart on bid/ask with mid-point at least -900. This puts BOGO now at $530/mt which is $200/mt above where physical premium for Fame0 are trading.
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