04.24.2024
Biodiesel output strong in Q2; producers start locking in Q3-Q4 sales
A second producer echoed this sentiment and said they have had to work a bit harder to secure feedstock to line it up with sales at the right time.
Distillers corn oil (DCO) prices were higher for spot sales out of the IL/WI, Mo. River and NE/KS markets today. Demand remains strong through the remainder of the year and prices have been helped by the continued surge in soybean oil prices. Spot prices continue to track over 90 percent of the price of nearby soybean oil on tighter production. Ethanol production was estimated lower by the EIA at 962,000 barrels per day last week. DCO production is estimated at 9.13 million pounds per day, down 1.5 percent from last week and 8.4 percent from the prior three-year average. It’s reasonable to expect prices to remain supported at these levels if soybean oil prices continue along at current levels. With COVID shutdowns there is risk in the market for supplies to continue to…