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...
Crude corn oil price indications in the Midwest cash market dropped this week. Assessments rolled back to the upper 50s cts/lb FOB, with a deal reported as high as 60 cts/lb FOB. This was down from a bid/ask range of 62-64 cts/lb FOB previously. In the last month, values for Midwest crude corn oil are down 8 cts/lb, or about 12 percent.
Over the last few weeks, soybean oil and other vegetable oil markets have been crumbling, with demand in the U.S. interior from the biodiesel and renewable diesel sector easing. Apart from many producers being well covered through year’s end and perhaps into first quarter of 2024, biofuels margins remain poor. Prices for Renewable Identification Numbers (RINs) traded below 80 cents per gallon on Tuesday.
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