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Cargill has been delivering soybean oil into CME futures contracts on consecutive days, signaling it is unable to find physical buyers at prevailing prices. Several trade houses are aggressively positioning in soybean oil futures, and spreads remain firm.
Commentators read the moves as a sign of weak physical demand.
Heavy delivery into CME soybean oil points to weak cash demand and a market where physical values sit below delivery equivalent. This tends to pressure nearby soybean oil futures.
czapp.comWalter CroninMay 14, 2023Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Cargill delivering soybean oil against CME futures on consecutive days signals weak physical demand at prevailing prices, which pressures futures.
