A second season of reduced EU vegetable oil stocks as crushers lower crush and sanctions reduce SFO imports from Russia. This will have limited impact on Biodiesel as stocks of both Soybean oil and Rapeseed oil will stay the same and even increase for RSO. Rally in Crude palm oil despite higher duties in India keeping values including UCO firm in Southeast Asia with UCO offered FOB strait at $880/mt. Meanwhile in NW Europe gross margin on UCOME still hover at $223/mt. More importantly RME (winter bio) gross margins tightened to $73/mt as RSO values firmed up. Gasoil has recovered markedly and BOGO 20dwma finally crossed over its 50dwma at +231 indicating a bullish signal although FAME 0 premium over ICE gasoil still trading at 200 premium to BOGO. There has been no change in the technical ugliness of both soyoil and gasoil chart while heat cracks remain strong on screen at $19/brl.
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