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.
Organic soybean oil prices have tumbled and are currently trading slightly north of the board. Prices are offered near $0.71 per pound, down above $0.08 per pound in the last 5-weeks. Prices will likely get a boost in Q2 and Q3.
In 2020, prices were buoyed by the decline in the U.S., crushing due to huge volumes of organic soybean meal that came into the United States from India. Organic soybean oil is used in feed and some food, but it generally makes up about 1% of the feed ration used for organic poultry and dairy. As organic soybeans become more scarce in Q2 and Q3, there will likely be less organic soybean oil around, and that scarcity should help lift prices back into the $0.70 range.
The conventional organic soybean oil curve is flat and downward sloping. July is printing just shy of prompt CME soybean oil, and December is $0.03 per pound lower. Fast market/The Jacobsen sees the curve at higher levels. Our…