Tight Supply Supports Kosher Crude Glycerin While 80% Crude Remains Steady

The average FOB biodiesel price increased for a fourth consecutive week, slightly outpacing rising soybean oil cost.  This allowed further improvement in production margins, almost to the point where the combination of fixed and variable costs is being met.

Producers have been reporting an uptick in biodiesel pricing, but they have also been reporting a decline in 80 percent crude glycerin values.  Crude glycerin remains volatile with spot prices ranging from 20 to 28 cents.  Some product, just below the 80 percent grade, has been reported trading less than 20 cents per pound.  Most trades The Jacobsen has been receiving information on, have been in the lower 20 cents per pound area. 

This tends to coincide with reduced export demand from China.  Backing out freight cost, the Chinese market appears willing to pay about 22 cents per pound…