Biodiesel To Account For 25Pct Of Soyoil Usage In 08-09 - Oil World
The U.S. Soybean Export Council noted Nov. 17 that oilseeds analyst Oil World has forecast biodiesel production could account for nearly 25% of total soy oil consumption in the U.S., Argentina, Brazil and the E.U. in 2008-09.
Argentina and the U.S. are expected to have large biodiesel output growth, the report found. The U.S. is expected to consume around 1.35 million tonnes of soy oil for biodiesel in 2007-08, about 16% of total U.S. soy oil consumption.
There has to be something fundamentally wrong when
A barrel of crude oil is worth more in the US than a house!
Oil has hit a fresh all-time high of $111.80 overnight, whilst houses can be bought in the US for $100 (see report further below: US Recession).
The dollar's demise is blamed for this latest rush on crude. Interestingly, soyoil which we have all been told recently is now "inextricably linked" to crude is around 100 points lower on eCBOT this morning.
What goes up etc
Having closed locked in limit down on Friday night CME soyoil is locked in another limit (200pts) down this am on all positions bar the soon to expire March. May soyoil is down 1136 points since last Tuesday.
Beans, which fell their 50c limit Fri are down around a further 40/45c this morning. May beans have lost 220c in a week.
The recent darling of the wheat rally May Minneapolis wheat fell it's 60c limit Fri night & is down around 55c further this am. This presents some speculators who bought a week ago last Thursday at just shy of $20.00/bushel with a net loss of almost $7.50/bushel!
Meanwhile this side of the pond French rapeseed futures have been hit hardest with May dropping EUR20.50 Friday, and already trading a further EUR9 lower at 10am this morning.
US recession worries have sparked fears that the "new money" piling into ag's might disappear as fast as it arrived with many speculators already facing a pasting. Lets hope we can get back to some sense of normality with futures markets serving the purpose for which they were originally intended.
Mar Chicago Soyoil
Down 900 points in a week!!
Chart
Oil nosedive, pound up
Chicago soyoil, locked in limit down last night is again limit down in virtually all positions this am.
Chinese soybean futures have settled sharply lower overnight as speculators and inverstors bale out sending soyoil futures limit down there as well.
Meanwhile the pound is back up over $2, climbing to its highest level in almost three months, as traders pare bets on interest-rate cuts by the Bank of England.
Sterling is heading for its biggest weekly advance against its U.S. counterpart since January and rebounded from a record low versus the euro after the U.K. central bank held its main rate at 5.25 percent yesterday.
Soyoil sharply lower on Chinese Govt talk
eCBOT soyoil futures are sharply lower this am, reversing last nights strong close on talk in the market the Chinese central government may sell vegetable oils from state reserves and cut import tariffs on vegetable oils to curb surging prices. Nearby Mar soyoil currently down over 200pts.
