Crude prices shot higher as OPEC forecasted large expected cuts to oil investments that will likely ease production and reduce global crude supplies. Heating oil futures also reacted with an extremely solid move higher to the news. HO futures were up nearly six cents per gallon. The strong HO move was only offset on its effect to the BO-HO spread by a slightly softer rise in soybean oil futures. The BO-HO dropped nearly 4 cents to its lowest level since October 9th.Read More
Biodiesel and renewable diesel imports continue to enter the U.S. market at a rapid pace. 2015 Biomass-based diesel imports through August are already 96% of full year 2014 imports and ahead of the 2013 import pace that saw 342.4 million gallons imported. However, imports in 2013 accelerated greatly over the final four months of the year, likely taking advantage of the expiring tax credit at the time.The most active biodiesel import activity originates from Argentina and Indonesia.
In 2012, Argentina and Indonesia were the two biggest exporters of biodiesel to the European Union. They were responsible for roughly 90% of all biodiesel imports to the EU. As of August 31st, Argentina and Indonesia account for 72% of all Biomass-based diesel imported to the United States. During 2012, the EU accused Argentina and Indonesia of dumping their biodiesel in the EU market at below market prices. During 2013, anti-dumping duties for biodiesel were imposed on Argentina and Indonesia. The duties severely limited the imports from these countries.Read More
Our Animal Fats and Proteins Editor, Ryan Standard, recently spoke at the American Fats and Oils Association meeting in New York. Ryan presented in the Tallow Forum. His presentation addressed the changing supply and demand dynamics in the tallow market and discussed how the changes have affected the way that the market has traded product in the last few years.
A few of the highlights from Ryan’s presentation are captured below.
When comparing cattle slaughter from 2006 to 2014, the number of cattle being processed is off 16% or 5.6 million head. At a rough estimate of 135 lbs of inedible tallow per head, that equates to a reduction in supply of over 750 million pounds or 344 thousand MT. During this time period, biodiesel usage of tallow has increased from near 0 to 356 million pounds in 2014.Read More