The RFS renewable volume obligations (RVOs) issued by the EPA provide percentage standards that are applied to the initial forecast available at that time. The percentage standards translate into volumes based on the estimated consumption forecast. The actual RVOs only become known over time but use the same percentage standards applied to the original estimated volumes.
Reviewing the November STEO and applying the appropriate percentage standards, 2023 gasoline consumption has fallen from the original estimate and has lowered the implied ethanol mandate from 15 billion gallons to 14.90 billion gallons. The implied ethanol mandate, plus the supplemental mandate, are currently above projected 2023 ethanol consumption forecast of 14.18 billion gallons. This implies an ethanol blend gap of 970 million RINs, which is up from the 950 million RIN shortfall projected from the October STEO release.
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11.22.2024
Biodiesel margins rise, but window of opportunity limited
Biodiesel margins continued to rise during the week to Friday November 22. The bean oil/heating oil (BOHO) spread boosted margins by falling to its lowest level since August 27.
11.22.2024
Gulf prices average higher despite weeklong declines in SBO
For the week ended Friday November 22, packer bleachable fancy tallow (BFT) remained unchanged from the previous week’s average, while Gulf Coast-delivered tallow rose 2.7%, primarily...
11.22.2024
Bloodmeal largest price mover week on week; November cattle on feed higher
US animal protein prices were mixed to mostly higher for the week to Friday November 22, with only meat and bonemeal showing a slight price reduction due to tighter...