BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
COOKIE NOTICE

Register with us today

and in less than 60 seconds continue your access to: Latest news headlines Analytical topics and features Commodities videos, podcast & blogs Sample market prices & data Special reports Subscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber (https://pmc.platts.com), Please navigate to Platts Market Center to reset your password.

In this list
Agriculture

US biodiesel assessments reach highest level since 2016

Biofuels | Grains

What do USDA WASDE numbers mean for grains and ethanol markets?

Agriculture | Biofuels

Platts Biofuelscan

Commodities | Energy | Oil | Crude Oil

North American Crude Oil Exports Summit

Agriculture

US DDGS export market plunges over financial turmoil in Turkey: sources

US biodiesel assessments reach highest level since 2016

Houston — A sustained rally in heating oil prices lifted US biodiesel assessments Tuesday to their highest level in more than a year.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

The US Gulf Coast and Midwest SME biodiesel assessments rose 6.9 cents to $3.3585/gal and $3.5585/gal, respectively. The assessments marked the high levels since December 13, 2016, when Gulf Coast SME reached $3.5545/gal and Midwest SME reached $3.7745/gal.

The Tuesday uptick was the sixth straight increase for the two assessments.

Strengthening heating oil futures have powered the rally, which has seen Gulf Coast and Midwest products rise 13.5 cents and 19.5 cents, respectively, since December 15.



In that span, NYMEX ultra-low sulfur diesel futures have gained 13.5 cents, from $1.9035/gal to $2.0385/gal.

Tuesday's big spike in prices came after an explosion at an oil pipeline in Libya that was expected to push crude production down substantially.

The falling ULSD prices have also helped improve biodiesel blending economics.

The boho factor, or the relationship between the price of soybean oil and heating oil, has fallen to 40.83 cents/gal on Tuesday, the lowest level since September 22, 2015.

However, despite the improvement in blending economics, biodiesel production costs still outpace diesel fuel costs.

That has spurred blenders to stop discretionary blending of biodiesel and seek to purchase Renewable Identification Numbers -- essentially biofuel credits -- to comply with federal renewable fuel blending mandates.

Prompt trading has also been hindered by the expiration of the $1/gal biodiesel tax credit, which Congress is expected to reinstate in January.

--Wes Swift, wesley.swift@spglobal.com
--Edited by Derek Sands, derek.sands@spglobal.com