London — The premium for biodiesel FAME 0 over ICE gasoil hit an all-time high Wednesday of $486.75/mt, up from $471/mt the previous day while the outright price hit an all-time low of $734/mt, down from $740.75/mt.
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Drastic falls for ICE gasoil futures were the key driver in the FAME 0 moves Wednesday, with market participants taking a cautious approach to physical and paper trading, waiting on further indications on whether the gasoil market had further to fall.
"Gasoil came off, most of the market is waiting...they don't see a bottom for where gasoil will go," one source said.
The outlook for FAME 0 was tough to call, according to sources.
Demand for the biodiesel was expected to increase moving out of Q1 and into the warmer months, but the view was clouded by movements on the wider energy complex and the potential for a price fall on vegoils, one source said.
"I'm sitting on the fence" the source added, regarding price movements.
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