Cash basis on crude-degummed (CD) and refined, blended, and deodorized (RBD) soybean oil in central Illinois has started to come off following talk last week that a renewable diesel (RD) producer was selling a big chunk of its soybean oil position back into the market due to operational issues and/or poor margins. Amid rising feedstock costs, margins for biodiesel and RD producers have been wading in negative ground.
The spread between CD and RBD soybean oil in Illinois continued to narrow, from 11.75 cents previously to 10 cents. RBD soybean oil is the preferred feedstock for many U.S. renewable diesel producers, particularly those that lack on-site pre-treatment facilities at their plants. There were rumblings that several RD plants may be offline, and this has brought a heavy portion of oil back to the market for the nearby and fourth quarter periods.
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