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...
Market Activity
Trading was quiet to close out the week. Porcine MBM out of the Mo. River market is finishing week at a $45 premium to the Mo. River ruminant market. For the 2015 – 2017 period, the average spread for August is $28.99 and the spread for September of the same years is $17.64. Given the wide spread to ruminant and the strong slaughter numbers, the fundamentals suggest that the weakness will continue in the porcine MBM market.
Figure 1.