What seems to escape many is that SouthAm exporters are really keen to export this monster crop. Projected exports for Brazil alone are nearly 93 mil MT (this is 80% of US production of Soybeans). This is why premiums for Soyoil bid/ask are 100 points apart or more at -800 FOB paranagua. Rapeseed oil was under heavy pressure in Europe down to 950eur/mt FOB Dutch origin and still the cheapest oil in Europe while soy oil pains to follow and still the most expensive soft oil in Europe... about 10euro/mt above sunflower oil. Something is not right when SouthAmerican production of Soybeans is nearly 2X (196mil MT for Braz/Arg/Pgy) the production of US.
Comments