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Biodiesel crush margin remain strong still up 53% in last 3 months

Gross margins on RME in Northwest Europe on the spot at at $226/mt as combination of strong diesel values and lower input prices continue to support margin on both sides of the Atlantic. Rapeseed oil remains the highest priced soft oil and has now developed a backwards curve through new crop (M/J) of +$32/mt. Soybean oil has a flat curve and is now the cheapest soft oil in Europe at almost $65/mt discount to Rapeseed oil. Sunflower oil prices are also flat with expectation of renewed shipments from East Europe/Ukraine in spring as crushers in East Europe are very long. Renewed rumors of anti dumping action by the EU on UCOME from China are still keeping imports very light - trade expectations are $20/mt meanwhile prices of UCOME are about $100/mt premium to RME at the moment. RME/F0 still at $75/mt but certainly blending FAME will be difficult this season as imports of high cfpp products to blend are scant. In US ramp up continues while D4 RINs hover above 0.40 gal and LCFS trading within 58-$68/mt. Argentina was unsuccessful in passing any biofuels legislation leaving producers and blending levels up in the air. Soyoil offers FOB Paranagua strengthen to -450 but spread btw bids and offers very large showing demand not there yet. Meanwhile situation in Suez not improving with traffic down 90% with all vessels going around cape.

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