Ethanol Blog

U.S. spot biodiesel prices took a 6.0cts plunge early Tuesday as New York Mercantile Exchange ULSD futures drop more than 2% and the biodiesel industry lacks support from federal subsidies, including the expired $1 gallon tax credit and uncertainty surrounding the annual mandate.

"Overall the energy market is hurting biodiesel and the fact that we don't have Renewable Volume Obligation and tax credit, there's nothing to support it," said Pete Moss, president and biodiesel analyst for Frazier Barnes and Associates, Memphis, Tennessee. "My diesel fuel price at pump here dropped 20cts yesterday."

The Environmental Protection Agency has yet to finalize its proposed 1.28 billion gallon 2014 biomass-based diesel mandate that the industry is near fulfilling while the tax credit expired at the start of this year.

At last peek, spot soy methyl ester biodiesel prices were heard at $3.09 gallon for Chicago, Houston and New York Harbor compared with Monday's end day price assessment of $3.15 gallon.

Myke Feinman can be reached at myke.feinman@telventdtn.com.

(CZ)

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