Overall feedstock use was up 4.86% vs same time last year yet soybean oil use was down 6% yoy and Tallow use up +96% yoy driven mostly by increased imports notably from Brazil. We also notice continued large increases in canola oil use +34% Vs last year in May. EIA also increased overall capacity in the US for RD/Biodiesel to 4575 Mil Gal (14 Mil MT) +10.8% mtm and +39% y-o-y. it should be noted that conventional Biodiesel capacity increased only to 2022 Mil Gal or +1.55% mtm and -2.8% y-o-y reflecting how the increase in RD/HVO is driving the expansion. EIA still does not do a good job of gauging the "other" category for feedstock which has been previously withheld but now is showing levels that are easily exceeded by imports of UCO from China. UCO imports from China continue to exceed EIA declarations notwithstanding UCO use by plants generating RINs outside of the USA. Meanwhile in Northwest Europe RME trades at $1123/mt yielding a gross margin of $78/mt while FAME yields an $83/mt as Soybean oil is now the cheapest soft oil in Europe with a relatively healthy contango structure paying you $33/mt to store through Jan25. WASDE did not disappoint shorts on soybeans as large crops simply get bigger. On the other hand, the EU is reporting a shorter rapeseed crop but this excludes Ukraine and Russian imports that surely could compensate.
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