We are seeing footprints of Renewable Diesel longs in Mar Call options at strikes of 68, 70, 72, 74, 75 and even up to 80 in large volumes. This is a pattern that we have seen before that has dragged soy oil futures higher as it maybe related to pricing. Current volatility at strikes of 64 is low at ~28% while it climbs to 34% at the higher strike of 80. Bean oil as a coefficient of Gasoil has dropped from the 1.80 levels on Dec2 to 1.55 now and looks poised to bounce higher at least temporarily as world awaits shipments from Brazil's new monster Soy crop.
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