05.17.2024
Uncertainty with 45z tax credit may affect Q1 2025 biofuel contracts
The expiring BTC provides a one dollar per gallon blenders credit up front with an additional 30 to 40 cents of credit to producers on the backend. Crimson...
Fat trading was quiet in the Australian domestic market and for export this week. September tenders are underway, which tends to lead to a quiet month’s end. Indications for September are higher with additional demand seen from the renewable fuel sector at a premium to the current market. Supplies remain tight with slaughter 29 percent below year ago levels. The MLA reported cattle slaughter in the Eastern States at 106,674 head last week. At least two JBS facilities remain closed and reports are mixed on if and when the plants will restart. A lack of Jobkeeper payments (payments from the AUS government to assist with COVID related interruptions), whilst other packing facilities have received payments, is partly to blame for the prolonged closure. JBS Dinmore, one of the facilities idled, is the largest beef production facility in the southern hemisphere and represents more than 10 percent of the national AUS beef slaughter capacity. The slower production numbers combined with the…