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Rip tide of war in Europe affecting demand in Biodiesel


Pretty much all Biodiesel prices in Europe reflect poor demand with all grades including summer grades trading $30-40/mt below average of the month. General strikes in France this week will not help. What is particularly interesting is that FAME 0 which is the summer grade for Europe is trading at a $200/mt flat price backwardation to Q4 while Gasoil is only showing $65/mt. Despite this incredible backwardation in Biodiesel, you cannot find available storage anywhere in Europe to store Biodiesel. Additionally new rules particularly in the Netherlands have now forced blenders of clean products to align their exports to cleaner standards more in line with the EU rendering the Netherlands a poor blender hub. Gasoil has recovered somewhat and trading higher unlike bean oil at $75/mt above its 200 day WMDA. Bean oil on the other hand continues to be pressured and sitting right on the 200day WMDA with South American FOB premiums still showing bids around -1000. Only good news for Bean oil is the collapse of sunflower oil imports in India in Feb Vs Jan as Black Sea agri convoy deal just expired and due for negotiations btw Russia/Ukraine/Turkey soon.

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