Biodiesel demand and prices pick back up in May

In Germany, UFOP reports that demand for biodiesel picked up and prices climbed, drought and harvest concerns paralyzed the rapeseed business, and vegetable oils consistently firmed in May, driven by rising fuel consumption.

German rapeseed imports dropped significantly in March, U.S. soybean prices lacked clear orientation; abundant supply from, South America and favorable US crop forecasts had a negative impact, but new business with China lent support. Demand from compound feed manufacturers for rapeseed meal and expeller remained restrained. Crude oil prices recovered from lows on support from OPEC+ cap on production and growing buying interest.

Just about 222,000 tonnes of biodiesel were used for blending in Germany in March 2020. This was up 4.4 per cent from the previous month and a 27 per cent rise from March 2019. The amount of diesel fuel used for road transport amounted to 2.64 million tonnes.

March 2020 consumption of bioethanol amounted to around 85,000 tonnes. About 87 per cent went into blending and 13 per cent were used in ETBE. The total fell 11 per cent short of the previous month, but outpaced the figures of the same month a year earlier by 2 per cent.