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SouthAm Soy weakness now spreads misery in vegoil prices

Very weak premiums in both Soybeans and Soyoil add to the weakness of the entire vegetable oil sector. The cheapest oil in Europe, Rapeseed oil was down 45euro/mt. Also, BOGO was down as much as $30/mt but has somewhat recovered as premiums for Fame0 collapsed last night to +242/mt over Gasoil in Northwest Europe. The most impressive drop was in UCOME flat price whose backwardation was halved to +64/mt to Q1. Demand issues do exist in Europe as France is reconducting most of its strikes on wide discontent with government. The cause of the weakness in SouthAmerica maybe related to liquidity issues - perhaps impending devaluation of Brazilian Real so exporters trying to lock in $ pricing and hedge themselves. Real is at 5.26.

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