Despite lower gasoil flat price in last 3 months down 14%, backwardation has returned suddenly. Premium for Northwest Europe FAME took a dive but RME (winter bio) much less so; although, gross margin for RME was lower at $95/mt and a flat price at $1131/mt. We have returned to flat price values for RME not seen since last Aug 7. Much of this has to do with a much stronger USD/EURO as interest rates decline. Crop harvest has begun in the US with Soybean already at 6% vs 4% last year. Mississippi river low water issues will cause some issues as barge companies will have trouble moving grain and oilseeds at the moment causing pressure on farm prices for this bumper crop so a fast moving harvest is not welcomed. D4 RINs largely unchanged at 0.567 while LCFS bounced back up to $57/mt.
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