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...
Spot markets for vegetable oils were quiet on Monday. Market participants continued to point to lower indications in the Midwest corn oil market for both crude and refined corn oil. Feedstock supply is plentiful and demand from the biofuels sector continues to languish. Crude-degummed soybean oil basis at the Gulf was also lower, with assessments pegged at parity to 50 basis points above benchmark May soybean oil futures on the CME. Trading in the Gulf was reported at option.
After another volatile session, U.S. soybean oil futures were marginally higher at the close. The May soybean oil futures contract settled above 46.00 cents per pound, at 46.64 cents per pound, up 64 basis points per pound.
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