Ethanol Blog
Spot Biodiesel Tumbles as Buyers Balk at Higher Prices
Prompt biodiesel prices tumbled this morning at Chicago, Houston and the New York Harbor hubs after spiking earlier in the week on a profit margin squeeze. Earlier this week spot prices soared as soybean oil prices squeezed profits for producers.
"I just don't see it trading much out there, bids are low," commented a biodiesel broker this morning.
Spot prices for B100 soy methyl esters were down 10 cents this morning at Chicago, but flat on the week, pegged at $3.49 to $3.59 gallon range. Houston SME B100 tumbled 15 cents Friday morning but is up 1 cent from prior Friday at a $3.44 to $3.54 gallon bid/ask spread. New York Harbor lost 12 cents Friday and is down 2 cents on the week, pegged at $3.54 gallon.
"If you are putting bean oil into the plant, you are looking at a small loss, probably break even at best," said Jerrod Kitt, strategist for the Linn Group, Chicago, Illinois.
Myke Feinman can be reached at myke.feinman@telventdtn.com
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