Persistent volatility drives consistent uncertainty for renewable diesel and biodiesel producers. With increased regulatory action and production growth on the horizon, alongside mounting geopolitical tensions, stakeholders need a weekly insight into their operational costs and returns.
What happened?
US renewable diesel margins strengthened across all feedstocks over the prior week, January 13 through January 27, to reach one-month highs.
Modest Nymex ULSD strength and weaker feedstock markets combined with marginally stronger credit markets to create a secularly stronger margin environment last week.
Soybean oil overtook used cooking oil to return the highest margin on average.
Biodiesel margins firmed by 16.6%, week-over-week. The BOHO spread reached the narrowest since late-October 2022.
D4 RIN markets held strong across all vintages despite strengthening margins as tight 2022 compliance offset bearish fundamentals
The Gulf coast continued to import palm oil which will produce renewable diesel, earning D5 Advanced RINs at a 1.6 equivalence value.
A California-based SAF facility is facing operational issues, according to traders.
A Gulf Coast producer is scheduled to undergo maintenance next month, yet the extent and duration of work to be conducted is unknown.
