Trading in the US interior was sharply lower this week on a big drop in the renewable fuel credit prices. Renewable Identification Numbers (RINs) are credits used for compliance under the US Federal Renewable Fuel Standard (RFS) program and are generated by renewable fuel producers that have registered and approved pathways with the US Environmental Protection Agency (EPA). An oversupply of RINs in the market relative to the mandated blending levels has sparked a selloff in the market and prices are off 37 percent over the last four weeks, down the equivalent of approximately $240 for a tonne of renewable diesel.
Additionally, lower heating oil (ULSD) futures prices have combined with the lower RIN prices to pressure renewable fuel margins at or near negative levels. As a result, some biodiesel producers have slowed production and those still active in the nearby market have cut their bids significantly in an effort to claw back some margin.
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05.03.2024
Biodiesel imports fall to 8-month low in March; exports rise to 3-month high
Biodiesel imported into the US fell in March for the first time in four months while biodiesel exported from the US reached a three-month high.
Import demand from...
05.03.2024
BFT, soybean oil weekly average prices tumble
For the week to Friday, prices were broadly lower compared with the prior week’s average. Packer bleachable fancy tallow was down by 2.2% from the prior week’s average on...
05.03.2024
US animal protein prices remain under pressure; soymeal rises
US animal protein prices were mixed in the week to Friday May 3 but showed no large movements, with multiple market participants traveling for the Petfood Forum in Kansas...