In the Netherlands, Platts reports that an influx of biodiesel imports expected this summer have sent FAME 0 prices into backwardation of around $45/ton from prompt physical to Q3 paper levels despite a typical uptick in demand from summer driving that would have supported prices instead. Almost half a million metric tons from Indonesia, Malaysia and Argentina are expected to arrive in Europe between April and July. With a potential new investigation of dumping from soybean-based biodiesel, traders expect buyers to look more at palm oil-based biodiesel to avoid any potential issues with imports later on.
Category: Fuels