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Rain starting to reduce crops in both North/South hemisphere

Large amounts of rain in Europe during April has reduced what otherwise would be a bumper rapeseed crop. Similarly tail end of Southern Brazil crop experienced similar issue. Argentina also experienced delays in harvesting due to rains. It is still early to tell if this will impact quality Vs quantity. Decreases are not large at the moment. Meanwhile Biodiesel prices in NWE are subdued with RME flat price at $1189/mt which is only $8/mt more than on Feb28. UCOME and FAME0 pricing is the only big movers since the end of Feb at $1310 and $1171 respectively which is $53/mt and 73/mt higher respectively while ICE gasoil is $87/mt lower during the same period. Gross margin for Biodiesel are up nearly 23% in the last 3 months as premiums remain strong in Europe. In the US, we note that RD continues to saturate the west coast market as LCFS premium took another dive down to $56/mt yet overall subsidies including RINs and BTC still amount to nearly $600/mt for Bio. Expect to see much lower values soon as recorded imports of UCO into the US remain very strong.

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