The trend has been steady and relentless and as we approach -$53/mt discount. Obviously the banning of Palm based biofuels in EU and in the US has forced Indonesia to increase its biodiesel mandate to 35% and perhaps to 40% in the new year. This despite the fact that many palm products can meet EUDR and many other traceability schemes. It is my view that we should expect BOPO to continue to make new records as a discount to Bean oil mostly because of ample supplies. This should only end through the end of high ILUC risk crop based feedstocks for biofuels which is currently capped at 2019 levels now but should end by 2030 - we see a similar scheme under CARB/LCFS. Biodiesel screen crush remains quite steady reflecting healthy state of business in the US while RME in Northwest Europe still showing $121/mt gross margin. Both Gasoil and Bean oil back to trading below 20 day wdma which is not bullish.
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