Biomass-based diesel suppliers face a challenging market environment for facilities that have been using soybean oil as their sole or major feedstock choice, sources said. Fluctuations in feedstock costs have caused margins to compress since the third quarter of 2023.
Incremental operations that either use soybean oil as their main feedstock, do not have pre-treatment capabilities of their own, and/or do not have feedstock flexibility, are finding themselves in a difficult economic situation, according to market participants.
Several soybean oil based, non-vertically integrated biodiesel facilities have either idled or are currently idling because the economics are not in place to continue. Chevron closed two facilities this year, and the company is known for its feedstock flexibility.
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10.16.2024
US biofuel margins improve as production uncertainty climbs
Biofuel margins have shown a significant increase over the past couple of weeks, with feedstock prices moving lower while renewable identification number (RIN) values have climbed, Fastmarkets heard on...
10.16.2024
Technical tallow trades higher on otherwise quiet day in US fats and oils market
The US market for animal fats and oils was quiet on Wednesday October 16, with many industry participants in Nashville for the American Fats and Oils Association meeting.
10.16.2024
Light trade volume leaves most animal protein products prices flat
US animal proteins were steady to lower on Wednesday October 16, with the only price change on porcine bloodmeal, Iowa/Missouri/Nebraska.
Fastmarkets assessed bloodmeal, porcine, fob IA/MO/NE at $875-970...