Front month BOGO spreads are languishing in the low-$150s/t this morning as gasoil, soybean, soybean oil and meal prices all continue to lie at or near multi-year lows as the market considers any opportunities for increased pockets of demand to mop up oversupply.
With the economic focus increasingly on Chinese economic frailty, soybeans remain under pressure from fears that US exporters will suffer lost sales to their biggest overseas outlet. Monday’s crop report showed no material change in the condition of US soybeans, offering little in the way of any supply-side resistance to downward price pressure.
Over the past week corn belt temperatures have remained moderate, with many Midwestern locations not even touching 90 degrees Fahrenheit. This afternoon’s DOE stock report will likely be the next main source of impetus for oil and also corn after an extremely strong summer for US ethanol offtake. Expectations are for a large draw in gasoline, a smaller draw in crude and builds in US distillate stocks with US refinery utilisation down slightly WoW.