Palm oil remains the highest yielding and lowest cost to produce compared to any comparable vegetable oil, despite being the most expensive vegetable oil in the world today. Even after today's drop, the price of Palm Olein retains its leadership as it is priced at $1250/mt, while the price of Sunflower oil is $1230/mt in northwest Europe. Both Rapeseed and Soyoil costs are weighed-down by their protein content, requiring a more complex extraction process. Indonesia finally backtracked today on account of procedures on the implementation of the 40% Biodiesel mandate, admitting that it would take nearly 6 months to implement. The issue over the POGO premium remains unsolved as it still traded at +405/mt, which is way over the allowable export levy. Most importantly, the concerns over exports of Palm products at current prices are increasing as China lowered its 24/25 import outlook for vegetable oil (CASCE) by almost 700kt, which is going to be mostly palm. Meanwhile, in Europe, the spot barge market for Biodiesel was quiet and relatively lower on premiums. In the US, public companies, with 45z risk exposure started declaring that they had registered with the IRS for 45z. However, this procedure has been available since 31 May 2024 and has little impact on the lack of procedural guidance with respect to computing carbon intensity (GREET) on feedstock and testing/insuring the origin of the feedstocks. D4 RINs retreated a bit back to 0.69 c/gal as all eyes are on Washington DC with impending budgetary and debt-ceiling deadlines starting Dec 20 and Jan 1, respectively.
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