Biodiesel wholesale prices increase yet remain one of lowest cost options

In Germany, UFOP reports that wholesale prices for agricultural diesel and biodiesel have risen significantly since August. By contrast, rapeseed oil has been on a weaker trend. Agricultural diesel continued to be the lowest-priced option despite the price rise. Since the beginning of the year, wholesale prices for agricultural diesel, biodiesel and rapeseed oil have decreased considerably. Around midyear, agricultural diesel was traded at around one third below the January 2017 level.

In the wake of producers’ rising feedstock costs, asking prices for agricultural diesel and biodiesel firmed, since WTI crude oil prices have surged around 19 per cent since the end of June. The selling price for standard biodiesel with an around 60 per cent potential for reducing greenhouse gas emission compared to fossil fuels rose to 79 euro cents per litre. According to Agrarmarkt Informations-Gesellschaft mbH (AMI), this translates to an almost 3 per cent increase from the same time a year earlier. Consequently, the price gap against agricultural diesel increased to more than 13 euro cents per litre. By contrast, rapeseed oil prices plunged to an annual low in August. However, asking prices rebounded slightly as the biodiesel industry’s demand picked up in autumn. Rapeseed oil for nearby delivery most recently cost around 68 euro cents per litre, up just less than 4 per cent from this year’s low.