Biodiesel RINs up 264% Year-over-Year

Biodiesel RINs up 264% Year-over-Year

 

Soybean Oil Drives RIN Values Higher

The USDA’s May WASDE report showed the growing demand within the biofuels industry for soybean oil as feedstock. Biodiesel production always relied on soybean oil providing more than 50 percent of all feedstock for production. Renewable diesel firms primarily gravitated to tallow, used cooking oil, and distillers’ corn oil. With the number of oil refiners switching assets to renewable diesel production, soybean oil demand has started to skyrocket.  

This recent spike in demand was captured by the USDA, which forecast soybean oil use by biofuel producers to reach 12 billion pounds in the 2021/22 crop year, up from a projected 9.5 billion pounds in 2020/21.  Soybean oil prices advanced five percent higher to 67.58 cents per pound for July futures delivery and is 154 percent above…

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Runner market commentary
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