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Agriculture Energy Europe US

BOGO and POGO up as crude complex slides further

Overnight the oil complex traded down again, erasing gains made over Tuesday. Today’s EIA report is expected to be bearish as supplies increase to nearly 100 million barrels over the five year average. In the EU, RME saw its premium to FAME remain weak in physical trading, BOGO regaining some ground but at the expense of gasoil, which continues to decline. Since mid-July both soybean oil and gasoil have lost around 45 $/mt. Palm oil is bouncing off its lows, having closed at its lowest level since the end of April putting the POGO spread up 5 $/mt to 72 $/mt, 37 $/mt above the average for the year so far of 35 $/mt. The US soybean condition remains good, concurrent with liquidating of net long positions by hedge funds suggest that the outlook for soybeans could still be grim. A strong dollar is also pushing money out of commodities.

 

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