Ethanol Blog

Spot biodiesel prices continue slide after the Environmental Protection Agency in November said it would not mandate a Renewable Volume Obligation for 2014 this year, instead planning to address 2014, 2015 and 2016 RVOs next year.

"How do you make decisions in an environment like that?" asked Jerrod Kitt strategist for the Linn Group in Chicago, Illinois. "I guess the answer is you don't. You just try and maintain status quo."

Biodiesel production is on track to end higher than the original proposed blending mandate of 1.28 billion gallons for 2014.

Biomass-based diesel D4 category output from domestic production and imports as of Oct. 31 was 1.40 billion gallons.

"This is the ultimate kick the can down the road," Kitt said of the EPA delay. "I don't know if it does too much for you. It just kind of increases your uncertainty even more."

Spot biodiesel prices were talked at $2.87 per gallon for at the key hubs of Chicago, New York Harbor and Houston this morning, down 18.0 cents since Nov. 26.

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

(ES)

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