Macro Risk Lifts Energy While Biodiesel Economics Drive the Narrative

Tuesday marked a clear turnaround in flat prices, driven by macro and policy risk rather than a change in feedstock fundamentals. ICE gasoil February settled near 654 dollars per ton, up roughly 27 dollars on the day, a gain of about 4.4 percent. CBOT soybean oil followed, with nearby contracts up around 1.1 cents per pound, close to plus 2.2 percent. Despite higher flat prices, Mar BOGO held near 485 to 490 dollars per ton. The lack of spread expansion confirms that the move was energy led rather than driven by oilseed tightness.

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