Prompt biodiesel prices tumbled this morning at Chicago, Houston and the New York Harbor hubs after spiking earlier in the week on a profit margin squeeze. Earlier this week spot prices soared as soybean oil prices squeezed profits for producers.
"I just don't see it trading much out there, bids are low," commented a biodiesel broker this morning.
Spot prices for B100 soy methyl esters were down 10 cents this morning at Chicago, but flat on the week, pegged at $3.49 to $3.59 gallon range. Houston SME B100 tumbled 15 cents Friday morning but is up 1 cent from prior Friday at a $3.44 to $3.54 gallon bid/ask spread. New York Harbor lost 12 cents Friday and is down 2 cents on the week, pegged at $3.54 gallon.
"If you are putting bean oil into the plant, you are looking at a small loss, probably break even at best," said Jerrod Kitt, strategist for the Linn Group, Chicago, Illinois.
Myke Feinman can be reached at firstname.lastname@example.org
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