This chart captures the changing relationship in commodities as biofuels policy has an affect on values in the market place. Historically, we have seen tallow (in this case US export and Australian) trade in a band between Brent Crude prices and Palm.
After 2011 this relation starts to break down with tallow trading at a premium to palm in several time periods.
As the CA Low Carbon Fuels Standard starts to ramp up, and the low carbon model starts to be adopted by other states and countries, we speculate that government incentives will have further impact on historical relationships where rendered products with low CI values will become increasingly valuable.
11.15.2024
October soybean crush reaches all-time monthly high; biofuel demand limits rise in soybean oil stocks
The National Oilseed Processors Association (NOPA) reported the October soybean crush at a record monthly high of 199.9592 million bushels, eclipsing the previous record of 196.406 million bushels set...
11.15.2024
UCO 2025 market clouded by China’s cancellation of export rebate
China will cancel its current 13% export tax rebate for used cooking oil (UCO), a key biofuel feedstock, effective December 1, the country’s Ministry of Finance and the State...
11.15.2024
US animal protein prices steady to firmer week on week; SBM under pressure
The US animal proteins market was steady to higher in the week to Friday November 15. Even with decreases in Chicago Board of Trade (CBOT) soybean meal futures, prices...