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.
Fat trading was quiet in the Australian domestic market and for export this week. September tenders are underway, which tends to lead to a quiet month’s end. Indications for September are higher with additional demand seen from the renewable fuel sector at a premium to the current market. Supplies remain tight with slaughter 29 percent below year ago levels. The MLA reported cattle slaughter in the Eastern States at 106,674 head last week. At least two JBS facilities remain closed and reports are mixed on if and when the plants will restart. A lack of Jobkeeper payments (payments from the AUS government to assist with COVID related interruptions), whilst other packing facilities have received payments, is partly to blame for the prolonged closure. JBS Dinmore, one of the facilities idled, is the largest beef production facility in the southern hemisphere and represents more than 10 percent of the national AUS beef slaughter capacity. The slower production numbers combined with the…