RBD Soybean Oil Premium to Crude Holds Near 46-Week High


Fastmarkets’ valuation of biomass-based diesel margins moved sharply lower last week as soybean oil prices continued to rally. Soybean oil values climbed nearly four percent during the week ending July 7, and are up more than 20 percent in the past month. The rapid rise in Feedstock cost has pushed margins into the red for most producers, allowing margins to fall to levels not seen since 2021. Drought conditions across much of the Midwest, along with softer energy prices imply continued headwinds for biodiesel profitability.

B100 prices increased from $5.26 to $5.39 per gallon as biodiesel producers reported stronger prices for the second time in three weeks. The price increase did not keep pace with the rise in soybean oil cost, adding to margin difficulty.

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