The cash biodiesel market rallied early Thursday, with a trade source linking the gains to higher New York Mercantile Exchange ULSD futures. The advance came just ahead of the end of the second quarter and in front of a grain stocks report from the USDA set for release on Friday.
Thursday's sharp advance follows recent price weakness amid talk that the lack of a biodiesel tax credit has made blending economics less desirable. A $1 gallon tax credit paid to blenders of biomass-based diesel into petroleum-based diesel expired at the end of 2016 with little traction made midway through 2017 in reinstating the subsidy.
SME 100 biodiesel traded at $3.075 gallon in New York Harbor, up 20.0 cents, and at $2.975 gallon for Chicago, up 10.0 cents. In Houston, SME 100 biodiesel traded 12.5 cents higher at $3.00 gallon. D4 biomass-based diesel 2017 renewable identification numbers, or RINs, traded at $1.11, up 1.5 cents.
George Orwel can be reached at firstname.lastname@example.org.
© Copyright 2017 DTN/The Progressive Farmer. All rights reserved.