SBO spread futures rebound in a positive perspective.

The macro-led downturn that has been hustling the crushing industry in the main board markets it is now seeing a rebound. From last month to now prices for the soybean oils jumped back at CBOT as less oilseeds can be sourced in the Latam producing countries because of the offseason setting. The tight offer in Brazil continued to squeaze Paranaguá's market, with offers for September remaining firm at 145 ¢/bu, 12% higher than the best bid, and offers for August sustaining 3 ¢/bu higher to 140.

In the port of Santos, oilseed shipments remained scarce, with old crop premiums fixed above Paranagua values and flat prices on a FOB basis assessed at $377.75/mt for September shipment, up $1/mt.

Given that scenario, the almost all time Q2 curve dive is now looking up, based on crushing industry purchases(so it seems). According to a USDA export sales noticed days ago, 126,000 mt had been bought by unknown destinations, sources advised that China had bought at least two cargoes from the Gulf for November shipment. And with China’s foreign ministry declaring last Thursday that they would commit to the terms of the phase-one trade deal despite current political relations with US Govt., the feeling is that this buying would continue boosted in the market.

Soybean Oil priced at $ 716/mt FOB terms.