Despite this abundance of Vegetable oils, oilshare has gone from 35% to 45% in the last 2 months. US renewable diesel ramp up continues ahead of Sep 30 deadline for current US govt fiscal year to collect Biodiesel Tax credit so we can expect to see continued strong demand through end of August. International values as reflected by FOB paranagua still shows weak premiums although July Bean oil / palm oil spread has narrowed a bit to $640 in the spot and showing now $471 for Dec indicating the type of inverse ($169/mt) we are dealing with through Dec23. This inverse is way too great as bean oil inverse from sep futures to Dec is only $50/mt. So we can expect a lot of volatility in Bean oil in the next 6 weeks as crush margin are holding up quite well despite the fact that Soy exports from US are dismally lagging.
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