- Basis should be covered through Q4 and Q1. Futures through mid-Q2
- Ukraine and Russia drought garnering increasing concern
- Some showers occurred in Russia this weekend, but hardly enough to break the drought and the next two weeks looks drier.
- Russia forecast mostly devoid of rain; planted area expected to drop 10% – 15%
- Drought in SW Plains expanding; La Nina conditions could extend drought
- Still have record global stocks going into next year
- Coverage should be through Q3. .
- Palm and SBO have resumed upward price action
- US SBO stocks at bottom of five-year range
- La Nina could hurt palm production
- SBO demand for biodiesel remains strong
- World edible oil usage ratio at 20+ year low