If there was any doubts about Govt funding, it went out the window as CR (continuing resolution) approved this weekend for another 3 months. Shows how dependent the Renewable Diesel industry is on subsidies from US Congress. We can now expect further production spike on Renewable diesel as there is no longer a need to be cautious. LCFS also spiked higher to $60/mt surprisingly helping the overall economics despite high inventories of LCFS credits in the bank. Although screen crush margin had declined this last week, it excludes RINs calculations and therefore bio econ has been further been boosted. In Northwest Europe we saw a large decline in pricing of RME (winter biodiesel) as gross margin reached $103/mt with a flat price of $1160/mt. Although we are in winter season, F0 gross margin showing barely $40/mt while UCOME still has ample gross margins of $270/mt. It should be noted that river levels on Rhine are not going in the right direction threatening freight values and logistics this early autumn. Similar as what we are seeing on Mississippi for grains.
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