This chart captures the changing relationship in commodities as biofuels policy has an affect on values in the market place. Historically, we have seen tallow (in this case US export and Australian) trade in a band between Brent Crude prices and Palm.
After 2011 this relation starts to break down with tallow trading at a premium to palm in several time periods.
As the CA Low Carbon Fuels Standard starts to ramp up, and the low carbon model starts to be adopted by other states and countries, we speculate that government incentives will have further impact on historical relationships where rendered products with low CI values will become increasingly valuable.
05.03.2024
Biodiesel imports fall to 8-month low in March; exports rise to 3-month high
Biodiesel imported into the US fell in March for the first time in four months while biodiesel exported from the US reached a three-month high.
Import demand from...
05.03.2024
BFT, soybean oil weekly average prices tumble
For the week to Friday, prices were broadly lower compared with the prior week’s average. Packer bleachable fancy tallow was down by 2.2% from the prior week’s average on...
05.03.2024
US animal protein prices remain under pressure; soymeal rises
US animal protein prices were mixed in the week to Friday May 3 but showed no large movements, with multiple market participants traveling for the Petfood Forum in Kansas...