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FAME Biodiesel in Europe trades strongly above BOGO despite deep contango structure in premiums

FAME average of the month at +518 over ICE Gasoil while BOGO spot futures closed at +451. BOGO is in a clear contango of almost $50/mt through May23 while FAME is showing a $70/mt contango for the same period. BOGO is trading just above its 200 day average as bean oil continues to be under pressure. We can see that vegetable oil premiums in South America remain under pressure ahead of Brazil soy crop harvest - safrinha already underway. EU deforestation rules also adding pressure on Vegetable oil complex as EU members will try to restrict imports of Vegetable oil with emphasis on Soy oilseeds and palm oil. Who would have guessed one year ago that Rapeseed oil would be the cheapest soft oil in Europe?

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