“From a cash perspective, [soybean oil] basis premiums through the end of March remain under pressure and rather unchanged to say the least. With the board up, end users have taken a back seat for now beyond March,” a trading source said.

Using the US Department of Energy’s release of GREET, biofuel producers can now determine their feedstock emissions rate under the Clean Fuel Production Credit (CFPC), or 45Z. The value of the credit is determined by a fuel’s lifecycle greenhouse gas emissions rate.

“It was good to see that we got guidance, but it was not much of a market mover that the industry was hoping for,” a second trading source said. “We have to remember that there is a comment period until April, and a lot can change in that time frame with a new administration taking office on January 20.”

Some market participants had feared that President-elect Donald Trump would roll back the 45Z guidance and essentially ignore it.

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