The Closing Numbers

The Closing Numbers

Not quite the follow through that some anticipated following the Commerce Departments announcement on their preliminary findings and countervailing duties on Argentine and Indonesian biodiesel imports. However, RINs did push higher, and with the B17’s trading at 118, prices closed at their highest level since December. The B17/E17 RIN spread expanded to 29 cents, continuing to expand as biodiesel RIN prices move higher while ethanol RIN values remain somewhat steady.  The spread had been as narrow 14 cents just over a week ago.

Soybean oil also received a significant boost in price. The September and December contracts both closed more than 60 points higher, with the Dec contract trading as high as 35.37 cents per pound before pulling back and settling at 35.06.  Heating oil rose 3 cents to $1.62 per gallon.  The stronger move in soybean oil prices pushed the bean oil/heating oil spread to 93 cents per gallon.  It’s highest showing in more than four weeks.

Weekly LCFS Credit Trading

Trading of LCFS credits during the week ending Aug 20th saw an increase of more than 500%.  Per California’s Air Resource board (CARB), 193,767 credits traded between Aug 14th and Aug 20th. The number of credits changing hands jumped 162,125 week over week and increased the year’s weekly average from 103,523 to 106,257 credits weekly.

CARB data shows that the price range the credits traded in expanded and moved higher.  Credits traded between $72.00 and $95.00, with the average price being $84.26. The prior week saw a range of $74.78 and $87.50, with an average price of $76.08.  There were 27 transfers recorded during the week, 27 more than were recorded during the prior week and 13 more than the 2017 weekly average of 14 transfers.

The average CARB credit trading price is in line with the range outside brokers had been indicating the market to be over the same time frame. CARB’s weekly report excludes 3 transfers totaling 19,288 credits because they were reported at zero or near-zero dollar prices.  CARB only includes transfers that were completed in the given week.  Any transfers proposed and still pending confirmation are excluded.

 

For any questions or comments in regards to Bean Oil Rebounds but Market Remains Subject to Further Downside, please contact David Becker at Google+, or LinkedIn

 

INDUSTRY-RELATED NEWS


Aug 15 (Reuters) EPA erred in denying renewable fuel hardship exemption: courts – The U.S. Environmental Protection Agency used too strict of a test when it wrongfully denied Sinclair Oil’s request for an exemption from the country’s biofuel regulations, a U.S. appeals court ruled on Tuesday.   The ruling could potentially broaden the rules governing such exemptions, forcing the EPA to grant more in future years under the controversial Renewable Fuel Standard program. READ MORE

Aug 08 (Biomass Magazine)  Neste reports record quarterly renewable diesel sales – Neste has released financial results for the second quarter of 2017, reporting record-high sales volumes of renewable fuels. The company sold 674,000 tons of renewable diesel during the three-month period.  During the second quarter, the company’s renewable products division recorded a comparable operating profit of EUR 101 million ($118.61 million), compared to EUR 119 million during the same period of last year. According to Neste, the segment was able to keep its result at a good level with the support of higher sales volumes and a more favorable market despite the expiration of the blenders tax credit in the U.S.  READ MORE

Aug 08 (Canada Newswire)  BIOX Announces 2017 Third Quarter Results –  BIOX sold 16.1 million litres and 45.0 million litres of biodiesel in Q3 2017 and YTD 2017, respectively, compared to 34.8 million litres and 78.2 million litres in the corresponding periods in fiscal 2016. The changes in sales and volume sold for both Q3 2017 and YTD 2017 are primarily due to lower sales of third-party product. The Company sold less than 0.2 million litres and 0.3 million litres of third-party product in Q3 2017 and YTD periods, respectively, compared to 22.1 million litres and 32.8 million litres of third-party product sales in the corresponding periods in fiscal 2016. READ MORE

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