FAME 0 premium bounces back to 10-week high

In the Netherlands, biodiesel premiums for FAME 0 over gasoil bounced back up to a 10-week high on Tuesday to $474/mt as veg oil prices soared and gasoil weakened. The RED RME premium also jumped to $513/mt on the back of CBOT soybean oil futures that spiked nearly 3%. The higher feedstock prices are wearing away at biodiesel margins even further. The difference in premiums means there is more demand to blend FAME 0, which will weaken RME further as summer blends allow fuels with higher freezing points such as palm oil and UCOME.