FAME 0 premium over gasoil hits all time high while gasoil hits record low

In the Netherlands, the biodiesel FAME 0 premium over gasoil futures hit a record high $486.75/mt on the back of gasoil hitting a record low of $734/mt but the trade expects the price to fall even further with no real idea of how low it can go. That hesitation in the market has left jitters all over, while making biodiesel continuously less attractive for blending except when absolutely required by mandates. Prices for vegetable oils could fall in the coming months, coinciding with increased demand summer demand for FAME 0, so whether prices weaken and ease the premium or weaker prices are negated by that demand is impossible to tell this far out.