05.17.2024
Uncertainty with 45z tax credit may affect Q1 2025 biofuel contracts
The expiring BTC provides a one dollar per gallon blenders credit up front with an additional 30 to 40 cents of credit to producers on the backend. Crimson...
At the central Illinois market, there is very little refined, bleached, and deoderized (RBD) soybean oil supply available for shipment for September or October at this point, trading sources said. Buyers would need to pay in the mid-teens to acquire product for those delivery windows right now. RBD soybean oil basis levels in Illinois for shipment during the end of the fourth quarter and the first quarter of 2023 were still at an inverse, indicated in a range between 11 cents to 12 cents. Indications for RBD soybean oil delivered by rail into the Northeast during the first quarter ranged anywhere from 13.50-15 cents this week.
Figure 1.
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