Lack of Clarity on Tax Scheme Begins to Slow Biodiesel Commitments

Lack of Clarity on Tax Scheme Begins to Slow Biodiesel Commitments

Biodiesel pricing is seen moving higher this week across much of the Midwest and south-central US. California biodiesel pricing was mixed, but mostly higher. Economics and questions surrounding the 2025 producers tax credit are souring many on the market.

A blender mentioned sentiment at the NIOP meeting was pessimistic surrounding renewables, oil, and the crush. Many companies are backing off making Q4 decisions without additional clarity on the tax structure.

Without knowledge on how CI scores are going to be calculated, modeling for the future will not work. Understanding market economics is a challenge when the pieces are all in place, but when key components are removed, the market slows.

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04.19.2024

Reduced March RIN production not leading to higher RIN Prices

Reduced March RIN production not leading to higher RIN Prices

Total March biofuel RIN production was 1.9 billion RINs, which was 6% below February and 15% below December’s RIN output of 2.25 billion. December had the largest monthly production...

04.19.2024

CWG, YG higher on week, UCO, DCO down again

CWG, YG higher on week, UCO, DCO down again

The market was quiet heading into the weekend. Used cooking oil (UCO) traded in large volume into the Gulf at 40 cents per lb delivered in the truck market.

04.19.2024

Price pressure on ruminant and porcine items for the week

Price pressure on ruminant and porcine items for the week

Sloppy markets were reported for porcine and ruminant items at the close of week ending Friday April 19.

Wide ranges were witnessed on porcine bloodmeal (BM), with a...

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