U.S. spot biodiesel physical markets have traded lightly in the first two weeks of 2014, primarily due to the expiration of the $1 gallon tax credit Dec. 31, 2013 resulting in large carryover supply.
"The market is very well supplied in terms of demand," commented Pete Moss, biodiesel analyst and president of Frazier, Barnes & Associates, Memphis, Tenn., adding that production in December would take some time to work through the markets.
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"There is always stuff getting done out there," one trader said this morning. "It might just be 15 to 30 loads of trucks here and there. If you are looking for large rail trades, it's probably a bit more quiet."
Chicago soy methyl ester biodiesel was pegged this morning at a $3.21 to $3.31 per gallon bid/ask range while Gulf Coast SME biodiesel was $3.26 to $3.36, a gain of 3.0 cents apiece on the session.
Myke Feinman can be reached at firstname.lastname@example.org
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