After flat trade last week, spot biodiesel prices spiked 6.0 cents in the Houston supply hub Monday, with trade sources speculating on the cause.
"It's been a quiet trade so its possible somebody got behind and had to cover some shorts," speculated Jerrod Kitt, strategist for the Linn Group in Chicago, Ill.
A broker doubted that scenario, saying the biodiesel market lacks liquidity, adding "But that doesn't mean someone wouldn't do it."
Houston soy methyl ester biodiesel spot prices early Tuesday afternoon were unchanged at Monday's $3.51 per gallon better-than one-week high.
Myke Feinman can be reached at firstname.lastname@example.org