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Combination of USD liquidity issues and SAmerica Monster crop pressure pricing


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.

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