What is happening here is exceptional as we had seen +$300 per MT premium in times of Soya crop concerns when the actual naturally differentiated oil spread was usually $100/Mt, but we are now seeing an $800/mt premium for Soyoil! This is of course mostly driven by two factors: 1/US subsidies for Biodiesel as nearly 68% of Biodiesel feedstock in US is American Soyoil (EIA data) and 2/a de facto Ban on Palm oil by the European Union under the Renewable Energy Directive that complements the already nearly ancient aversion for Palm by EPA under RFS. Is this sustainable? Are we going to leave the most prolific and high-yielding per hectare vegetable oil on the sideline as a feedstock for Biodiesel or RD?
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