RSO prices remain the cheapest soft oil in Europe. However we note that premium in RME biodiesel are showing $150/mt backwardation to Q2? (+690 for Feb and +542 over ICE Gasoil for Apr). You would think this is an hallucination! No it isn't as Germany most recently announced that Brown Grease as a feedstock would no longer be accepted as advanced under RED rules - so back to square one. Traders are focusing only on spot demand putting pressure on RME which is only winter biodiesel) with little or no forward activity until regulatory issues clearer. Bean oil still remains way too expensive matching Sunflower oil despite ongoing harvest in Brazil and strong pressures on South America premiums.
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