Spreads, Not Flat Price, Drive the Market as BOPO Climbs Above +140
Gasoil finally asserted itself today, rallying close to 3% and pulling BOGO sharply lower as biodiesel values simply could not keep pace with the surge in distillates. The most striking feature of the day was soybean oil’s complete lack of participation. Bean oil ended essentially unchanged even as gasoil surged, reinforcing the December pattern: energy remains tight and occasionally explosive, while vegoils stay fundamentally heavy. BOPO continues drifting higher — now well above +140 for Mar — driven almost entirely by ongoing weakness in palm oil. At this same point last year, BOPO stood near –200, even though soybean oil traded close to today’s levels. The difference was palm, then valued around $1,130/mt. Today, palm struggles to clear above the low $1,000s, and rising stocks across producing regions continue to weigh on the entire vegetable-oil complex.
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