Crude glycerin prices rose this week, with sources reporting to Fastmarkets on Monday December 30 that slowing biodiesel production is leading to reduced supplies.

One trader reported for a second week that he was seeing no glycerin offered whiile biodiesel producers wait to see what will happen with the Clean Fuel Production Credit, which will replace the Blender’s Tax Credit on January 1.

Uncertainty over biofuels tax credits has led to at least one new biodiesel producer shutting production this month, a second source confirmed. “Many are starting to idle production as we end the year,” the second source said.

“I expect a sharp increase in glycerin prices as inventory dries up,” the same source said.

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