Ethanol Blog
Spot Biodiesel Markets Struggle with Supply Glut
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.
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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
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