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.
Energy and Soybean Oil Pricing Moved Lower Last Week, RINs were Mixed
WTI Crude and ULSD prices edged one percent lower last week. WTI values dipped from $61.42 per barrel to$ 60.97 and ULSD slipped a penny per gallon to $1.81. Soybean oil prices fell three percent, but the decline conceals the volatility seen in vegetable oils. Soybean oil price dropped from 53.87 cents per pound to 52.48, but not before prices climbed to 57.48 midweek.
Feedstock (soybean oil) prices fell more than ULSD prices for the week, which allowed the bean oil/heating oil spread (BOHO) to narrow from $2.14 per gallon to $2.05. Biodiesel RINs have been trading near all-time highs. On March 16, the 2021 biodiesel RIN reached $1.51 surpassing its previous high of $148.50 in July of 2013. Last week, some of the pressure was taking off biodiesel RIN values with the BOHO moving lower. The 2021 biodiesel RIN declined three…