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Major Q2 2023 Developments in Global Biofuels Market

Major Q2 2023 Developments in Global Biofuels Market

Prima Markets, a ResourceWise company, continually monitors all major areas within the global biofuels and feedstocks market. We’ve collected some of the most critical news and updates available from our online low-carbon fuels and feedstocks platform, Prima CarbonZero.

Green Diesel North America: Spring Production Amps Up, Dropping Margins

In the US, major renewable diesel producers have cranked up their output versus a flat mandate outlook and weak diesel demand. As a result, margins have been retreating from their April highs as renewable diesel supply has grown versus rising demand for feedstock.

Diesel prices struggle to sustain short rallies after longer periods of decline thanks to the weakening economic environment. Feedstock prices have also been feeling the increased pull from operators looking to improve their margins on renewable diesel.

Green Diesel Europe: Slash in Swedish EU Mandate Darkens Pricing Outlook

After weeks of price pressure from surging exports of Chinese advanced biodiesel, the European market suffered another blow. Confirmation this week revealed that the new populist Swedish government expects to fully deliver its election promise to axe the national diesel mandate to the EU minimum.

Local sources say the move looks like a done deal politically. However, it has yet to be confirmed in official legislation.

International Vegetable Oils: Brazilian Bumper Crops Pressuring Strained Markets

Brazilian producers are in a trap, forced to sell their soybeans even if they’d rather hold on to them. The situation is causing downward pressure for Brazilian soybean premiums and impacting the market as a whole.

This push stems from 3 main culprits:

  1. A weaker Chinese demand
  2. Trouble getting the bumper supplies of oilseed to ports
  3. Lack of storage for the current crops

The downward trend comes despite the continued Argentinian woes. These seem to remain the only bullish factor affecting price formation and preventing prices of the oilseed from finding new lows even quicker.

Brazil now has around 96% of its estimated soybean acreage already harvested. Concerns regarding the weather reported extensively at the start of the year never materialized. This hastened some of the harvesting to a much higher current volume than a year ago.

International Ethanol: EPA Issues Emergency Waiver for E15 Gasoline Sales This Summer

Following several weeks of lobbying from US ethanol and its representatives in Congress, the EPA last week issued an emergency RVP waiver that will allow the sale of E15 gasoline this summer. The move has come just in time for the official start of the driving season on June 1.

The EPA’s action comes as petitions from eight Midwest governors for permanent state-level waivers were set back by a year.

Pressure on the EPA to reinstate the permanent federal RVP waiver that was put in place by the Trump administration is expected to continue. But signs so far indicate that the agency will be reluctant to move on the issue given the litigation that followed the previous rule.

The EPA has presented the emergency waiver to give consumers some support at the pump amid the fuel supply issues caused by the conflict between Russia and Ukraine. The authorization will reduce the country’s reliance on imported oil—and some of the volatility within the international oil market.

Prima CarbonZero: Key Data Your Business Needs for Decarbonization

These reports and more are all available from Prima Markets in our online platform, Prima CarbonZero.

Prima CarbonZero platform Daily Low Carbons - Biofuels page with comments, a daily report table on pricing, spot pricing, and future pricing.

We bring together decades of knowledge and experience on renewable fuels and feedstocks into one accessible, online platform. Subscribers can access a variety of reports, analytics, and data in all the critical areas:

  • Daily Low Carbon Markets: Biofuels, Feedstocks, and Tickets
  • Weekly Green Diesel Reports: North America, South America, and Europe
  • International Vegetable Oils
  • International Ethanol

Additionally, Prima’s Carbon Mitigator report provides real-world commentary and insights to help your organization move toward decarbonization.

There’s no better time than right now to start investing in your business’s low-carbon future. Prima CarbonZero can help get you there through our expertise and trusted, historical data.

Is your business gearing up to begin moving toward decarbonization? Not sure how to get started? Download the eBook, Mapping a Business Plan for Decarbonization: The Problem of Starting Now.

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Ready to see how Prima CarbonZero can work for your organization? Learn more about the platform and schedule a live demo.

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