Tue 17Dec2018: ICE gasoil takes a tumble together with crude to $532.25 on continued weakness in energy although RSI is ready for a bounce and Brent structure returned to backwardation today despite an ugly trading day. 3:2:1 crack bounced higher to $16.20/brl while HO crack still showing super high level of $27.55/brl. Biodiesel margin in US quite terrible with BOHO now at 35-37cpg meaning that only sales to California with LCFS make any sense. News on the BTC remains scant as administration and Congress trying to leave town this week without shutting down the government. Meanwhile in Europe RME remains in backwardation with spot asking for +705 while Q1 showing +420. RED FAME is shown at +225 for next year season (starts Apr1) and RED PME trading $25/mt lower. News of China buying Beans overnight, together with lower tariffs on cars would indicate that things are progressing well on the China front. Both side eager to do a trade deal to avert any further economic slowdown and would not be surprised that we see something before early Jan. Tmrw is Fed interest rate day and USD index still sitting at a one year high of 97.028.

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Published by SOLFUELS

Commodity trade with wide experience in Agriculture, Energy & Biofuels

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