FAME Premium Surges as BOGO Breaks Out – Futures Diverge from Physical Reality
European biodiesel markets showed renewed strength today, with FAME 0 premiums rising to +635/mt over ICE gasoil, their highest in recent weeks. This move tightened the RME/FAME spread to just $22/mt — the narrowest since July 11. RME was assessed at $657/mt, while UCOME remained firm near $745/mt. While UCOME continues to lead with a gross margin of $200/mt, RME margins remain healthy at $139/mt, especially compared to FAME 0, where economics are marginal. Contango in the BOGO curve supports storage economics, particularly for F0 heading into winter.
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