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Margins still weak for EU biodiesel producers despite veg oils drops

The BOGO spread rose slightly overnight following a rebound in soybean oil and a drop in gasoil. Gasoil is now approaching its lowest level since early January when the front month hit 458.25 $/mt, soybean oil is approaching a similar pattern, having declined 13% from its June high it still has 0.53 ¢/bu before it reaches its January low. The RSO/RME spread has widened, as RSO prices fell faster than RME. This should provide some relief to pressured producers with flat price RME values still above lows for the year. Globally crude is set for its largest monthly loss despite EIA data showing a drop in stocks and production futures have struggled to push higher. The silence on the rate hike by the Fed seems not to be unnerving markets too much, equity indices are kicking off the day in the positive following the slide at the start of the week.

 

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