Ethanol Blog

U.S. spot biodiesel prices toppled nearly 12 cents at the New York Harbor and nearly 7 cents at Chicago and Houston since the start of 2015 following the late 2014 reinstatement of a blender's tax credit that sparked a surge in production.

"There is a glut of biodiesel in the marketplace right now. Physical markets are very tough now," said Pete Moss, president and biodiesel analyst for Frazier Barnes and Associates, Memphis, Tennessee.

Spot biodiesel prices were talked Tuesday morning at $2.93 per gallon for New York, Chicago and Houston.

Domestic biomass-based diesel production surged 35% in December from November to 201 million gallons after Congress reinstated the credit, which pays $1 for each gallon of biodiesel or renewable diesel blended into a petroleum-based distillate fuel. The reinstatement was made retroactive for all of 2014, but again expired at year's end.

Myke Feinman can be reached at myke.feinman@telventdtn.com

(ES)

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