We have not seen BOPO at such a level ever as the biodiesel use by Indonesia is a new factor. Palm oil is now prohibitively priced for food use and frankly with POGO at +$407 and an export levy at $375/mt, it is difficult to see how domestic biodiesel blending can be financed at current levels. We are in unchartered waters as Bean oil futures drop below $1000/mt again yet new crop South America premium unchanged with new crop weaker bid -210/even. China has announced a reduction of soybean imports of 10% for 2025 will not help this trend. Screen crush margin for beans remains quite supportive above 1.50 c/bushels or $55/mt guaranteeing ample oil supplies for the next 2 months. The barge market in Northwest Europe was active with flat price winter Biodiesel trading at $1356/mt with a narrower gross margin of $104/mt. Meanwhile, in the US, the Department of Energy in an earlier report this year (BETO-2023) remains convinced we are on track worldwide to meet feedstock demand for RD/SAF if we are able to breach a gap of 19 Billion Gallons (100 Mil MT). Today D4 RINs dropped again to 0.681 c/gal.
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