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Rapeseed oil rips higher eliminating Biodiesel margin

Despite excellent crop conditions reported, prices of Rapeseed oil FOB Dutch mill reached 1000Eur/Mt bringing spot replacement margin to $91/mt for Biodiesel crush margins which is a far cry lower than the >$200/mt we have seen most of the Q1. Most of the other soft oil like Soy and sunflower remain under pressure. A major Biodiesel event in Singapore kept many distracted this week in an otherwise quiet week although the most dramatic commodity move came from Wheat on Black sea tensions. The EU commission announced that they had concluded their investigation of China on UCOME but have yet to fully report on it and it is still expected that some sort of new duty regime will be introduced by July. The EU Commission workload just went up a notch as Rapeseed meal imports into EU from Russia and Belarus exceeded even the more reasonable forecasts +16%. Meanwhile RME/F0 spread traded at less than $20/mt which should keep old crop stocks of Rapeseed oil well supported this summer in a year where world rapeseed S&D are well balanced.

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