Wednesday’s surprise draw in US crude oil stocks lent slight support to European ICE gasoil overnight, but failed to budge the front month contract beyond the range it has traded broadly around a $430/t anchor since the start of this week.
A build US in gasoline stocks amid a sharp downturn in production has brought the end of the US driving season into sharp relief, illustrating the likelihood of continued drops refinery utilisation. Bean oil has remained similarly flat, trading a range in the mid-to upper 26¢/lb range after moving away from its August lows, leaving BOGO in the mid-$150s/t for September this morning.
Rapeseed oil/palm oil spreads have fallen away from recent highs to reach just above $320/t this morning, with rapeseed oil spreads to bean oil down around $10/t at $173/t. Weather remains favourable to the soybean harvest in the US after a mid-August socaking across much of the upper Midwest provided a boost to soil moisture in areas where corn and soybean had seen little rain in the first half of this month.
MS — 27/08/2015