July gasoil went off board at +35/mt reflecting spot physical despite lower refining margins and demand in NW Europe. Futures reverted to a contango from Aug to Oct at -$4. Weaker gasoil never bodes well for Biodiesel. Large increase in distillate inventories to 128.1 million Barrels in the US does not help with good inventories of diesel in ARA at +3.5% at 2.08 Mil Mt. BOGO up 7% today mostly on Gasoil weakness but Soybean oil chart has barely moved despite physical premium being stronger in Paranagua at -100 Vs -200 but then this is end of season. Sunflower crops in both Russia and Ukraine are being reduced due to heat stress and forecasters are now diminishing supplies by 1 mil mt in each country. This will have to be reconfirmed and will tend to impact 2025 balance sheet. No such situation in West Europe where crops are generally in great condition. Money managers remain short in both grain and oilseeds...
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