Rains in the midwestern US likely to benefit soybean farmers were the main trigger falling bean oil prices overnight, accompanied by a sharp post-DOE drop in gasoil prices. The front two month bean oil contracts on CBOT both broke below 28 cents/lb on Wednesday, plumbing new lows last seen in early 2007.
Weekly US fuel stats showed continued weak distillate demand in contrast to still extremely strong US gasoline demand, with end-users dipping into stocks despite a 2.6% WoW gain in US refinery gasoline output. European ICE gasoil has shed over $4/t from yesterday’s $463/t settle.
Asian palm oil dropped around 1.5% on Thursday. Despite a MoM upswing in European purchases of Malaysian CPO in the first 20 days of August exports have otherwise struggled to maintain their early August pace.
Malaysia plans to expand its B7 biodiesel mandate to industry in an effort to lift domestic consumption by up to 300,000t/yr, a government minister said on Thursday. The governnment is expected to outline its expansion plan in early September.