05.17.2024
Uncertainty with 45z tax credit may affect Q1 2025 biofuel contracts
The expiring BTC provides a one dollar per gallon blenders credit up front with an additional 30 to 40 cents of credit to producers on the backend. Crimson...
RBD Soybean Oil Premium to Crude Soybean Oil Reaches 47-Week High
Fastmarkets’ valuation of biomass-based diesel margins moved lower as soybean oil prices continued to rise at a more rapid pace than biodiesel. Soybean oil values climbed over two percent during the week ending July 14, and are up nearly 15 percent month over month. The rapid rise in feedstock cost has pushed margins into the red for most producers, reducing margins to levels not seen since 2021. Drought conditions across much of the Midwest, along with softer energy prices imply continued headwinds for biodiesel profitability.
The average upper Midwest B100 price increased from $5.39 to $5.48 per gallon as biodiesel producers reported stronger prices for the third time in four weeks. The price increase was unable to keep pace with the rise in soybean oil cost, adding to margin difficulty.
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