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Agriculture Energy US

Soybeans prices higher on weak US planting

This morning September soybean oil/gasoil spreads stabilised at $166/t, with the spread loitering in the mid 160’s for the past 5 trading days. Soybeans rose on weak US planting numbers brought on by adverse weather, while soybean oil and gasoil both declined to maintain the mid 160 spread. Crude oil continues to trade near 6 year lowa as the market remains bearish on a persistent global supply glut. The September POGO spread increased as the market focused on demand side fundamentals with increasing buyers’ interest from India boosting palm oil futures. The fall in the MYR has renewed overseas investors’ interest in palm, with heavy demand driven by expected persistent ringgit weakness. RSO FDM for Sept came in with €685/mt, while FMA and MJJ demanded a premium of €1/mt, thereby flattening out the curve from Nov to July. Even though rapeseed global S&Ds YoY should read bullish, this is not yet reflected in price for the time being.

 

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