Gasoil ends August holding onto a circa $50/t gain since breakneck US economic growth shoved the faltering Chinese economy off the front pages at the tail end of last week.
A soybean market more heavily exposed to potentially weaker overseas demand has lagged gasoil’s gains, pulling the front month BOGO spread down to $130/t this morning even though bean oil has outperformed an essentially flat beans market.
With the Malaysian market shut on Monday, the European market will have to wait for fresh guidance on palm oil direction after Malaysian palm oil showed more sympathy with gasoil’s rally last week than US or European vegoil markets.
This trimmed palm’s premium to EU rapeseed oil to less than $300/t this morning after spreads briefly broketowards $340/t mid last week. The UK markets are also closed on Monday, which will likely set a quieter tone for European business.