Market Activity

The EIA estimated ethanol production at 1.029 mil bbl/day, up 6.4% from the week prior. DCO production was up to 9.1 million lbs per day. The extra material combined with some pushback from the biodiesel industry have pushed spot values lower this week. It’s reasonable to expect pressure to continue with buyers bidding the market down in hopes of finding a level where biodiesel production is profitable.

Figure 1.

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