Benchmark US bean oil prices marginally ouptaced gasoil to the downside overnight, contrasting with the gains seen in spot EU physical biodiesel premiums on Monday.
EU rapeseed prices have continued to resist the worst of the losses seen in competing soy and palm markets, with a downbeat Australian crop forecast lending further weight to a market outlook of drastically reduced supply in the new crop year.
US crop data meanwhile showed no change in WoW crop conditions from the 63% of the crop rated good or excellent the previous week, down 7 points from the same condition a year ago. Given relatively flat new crop fundamentals, selling impetus from the wider financial market rout of recent days remains a major driver for a bean oil market taking its supply steer from stronger meal prices. CFTC data showed a 14% increase in non-commercial net shorts in the bean oil market in the latest week of reporting.
The wider bean oil market remains marginally net long after longs built their positions steeply from early June into mid-August. Front month bean oil has lost 25% of its value over the same period.