Planting season for soy will start in RGDS in a couple of weeks and despite general lack of moisture in central Brazil partigularly Matogrosso, soil moisture is looking good in the South as well as Argentina Rosario basin. US crops finishing up with increasing bumper yield forecast already reflected in futures. The U/X soybean spread has cratered showing already a 19c/bus carry or -$7/mt while flat price hangs on to dear life down 21% in last 3 months. Meanwhile soybean oil is still showing backwardation of $17/mt which seems improbable considering healthy imports of tallow and UCO to satisfy US bio/RD demand and rail strike in Canada being over since Monday. In Northwest Europe gasoil contango is deepening with sep/dec now nearly at -$5/mt, nothing surprising here with general strike being called in France on Sep7.
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