11.22.2024
Biodiesel margins rise, but window of opportunity limited
Biodiesel margins continued to rise during the week to Friday November 22. The bean oil/heating oil (BOHO) spread boosted margins by falling to its lowest level since August 27.
Last Updated: 04.28.2023
For anyone trading in biofuels, The Jacobsen’s Biodiesel Bulletin captures market pricing across the complex marketplace including biodiesel, glycerin, renewable identification numbers (RINs) and the California’s low carbon fuel standard (LCFS) credit. Glycerin, as a by-product of biodiesel production, has volumes at about 10 percent of the biodiesel market. The bulletin includes regional biodiesel price information FOB the plant. Pricing is surveyed once a week and is used to generate The Jacobsen’s trademarked B100 price index.
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Our daily biodiesel pricing is obtained from a network of brokers that trade both the physical product and credits (RINs and LCFS). Our daily market pricing concentrates on volumes exchanged in the New York Harbor and Gulf Coast regions that also include international and renewable diesel prices.
The Biodiesel Bulletin commentary covers all of the aspects of the liquid biofuels market pertaining to biodiesel and renewable diesel. Some of these recent items have included the EPA’s monthly biofuel RIN production and fuel volume report, California’s weekly LCFS credit transaction report, California’s quarterly LCFS production and feedstock report, as well as all the political issues facing the market. An example of the political side of the market is the EPA’s use of small refinery exemptions, the on again – off again blenders tax credit and the renewable fuel standard (RFS) reset.