When the coronavirus reached pandemic proportions in mid-March, gasoline and diesel supply rapidly moved began to descend. Ethanol output reacted swiftly with output dropping from a billion gallons per day to 537 million within five weeks. Ethanol is generally about 10 percent of every transportation gallon of gasoline. As gasoline supply plunged on reduced demand, ethanol supply quickly followed.
The same did not hold for biodiesel and renewable diesel output following the pandemic announcement. The decline in diesel supply was less severe than for gasoline since the trucking and delivery industry was not impacted to the same degree as the light duty vehicle market. Biodiesel and renewable diesel also do not account for 10 percent of every diesel gallon. Their proportion is more along the lines of two to two and half…
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...