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...
During the last full week of October, indications for spot crude corn oil in the Midwest shot higher on increased buying, settling into a range of about 68-69 cts/lb FOB as of October 31. This was up more than 11 cts/lb from market assessments early last week. Crude corn oil at the spot market was said to have traded as high as 70 cts/lb at the end of last week but in limited volume.
Over the last few weeks, corn oil and other feedstock prices had been declining sharply. Demand in the U.S. interior from the biodiesel and renewable diesel sector dropped off due to a combination of plant downtimes and previously extended coverage. Also, prices for renewable Identification numbers (RINs) crumbled below $1.00/ per gallon, and this continues to dent margins.
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