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Fastmarkets assessed oil, ultra low sulfur diesel, fob ARA at $1,029.25 per tonne on Thursday, down by $138 per tonne week on week from $1,167.25 per tonne.
The largest movement was recorded in the rapeseed oil-gasoil spread (ROGO), which widened by $231.78 per tonne week on week to $453.62 per tonne, marking the biggest change among the major feedstock-to-gasoil spreads.
The increase was driven by both sides of the equation. Fastmarkets assessed rapeoil FOB DM Rotterdam at €1,265 ($1,482.87) per tonne on Thursday, up by €80 ($93.78) per tonne week on week.
Market participants attributed the strength in rapeoil prices to limited availability of old-crop material and continued premiums for prompt volumes, while most trading activity remained focused on forward delivery periods.
The palm oil-gasoil spread (POGO) also widened significantly, increasing by $183 per tonne week on week to $365.75 per tonne.
Fastmarkets assessed crude palm oil, cif Rotterdam at $1,395 per tonne, up by $45 per tonne from the previous week. Combined with weaker gasoil prices, the higher palm oil assessment pushed the spread sharply higher.
Similarly, the soybean oil-gasoil spread (BOGO) widened by $120.42 per tonne to $312.95 per tonne.
Although soybean oil values softened during the week, with Fastmarkets assessing soy oil FCA Rotterdam at €1,145 per tonne, down by €15 from €1,160 per tonne the preceding week, the decline in gasoil prices more than offsetting the weaker soybean oil market.
In biodiesel-feedstock markets, the spread between Fastmarkets’ daily biodiesel, UCOME outright, fob ARA price and the US dollar value of the daily used cooking oil, ISCC, ddp Northwest Europe assessment widened by $41.92 per tonne week on week to $344.91 per tonne.
The UCOME assessment increased by $59.50 per tonne to $1,681.25 per tonne, while UCO prices rose by $17.58 per tonne to $1,336.34 per tonne, supported by limited spot availability and continued demand for Europe-origin material.
By contrast, margins in the crop-based biodiesel complex came under pressure.
The spread between Fastmarkets’ daily biodiesel, RME outright, fob ARA price and the US dollar value of the rapeoil assessment narrowed by $87.78 per tonne week on week to just $29.38 per tonne.
While the RME assessment increased by $6 per tonne to $1,512.25 per tonne, the rise was significantly smaller than the increase seen in rapeoil prices, highlighting the pressure on crop-based biodiesel economics.
The spread between the daily biodiesel, TME, B100, fob Rotterdam assessment and the US dollar value of the category 1 and 2 mixed animal fat, max 30% ffa, ddp Northwest Europe assessment narrowed by $35.17 per tonne week on week to $476.38 per tonne.
The narrowing reflected a $35.17 per tonne increase in category 1 and 2 mixed animal fat prices to $1,113.62 per tonne, while TME remained unchanged at $1,590 per tonne.
Elsewhere, the spread between crude palm oil and category 3 mixed animal fat, 15% ffa, 97%, ddp Northwest Europe widened by $45 per tonne to $199.33 per tonne, reflecting the increase in palm oil values while animal fat prices remained stable.
The spread between rapeoil and category 3 mixed animal fat widened sharply by €80 per tonne to €245 per tonne, underlining the strength of the rapeoil market relative to animal fats.
The spread between soybean oil and poultry fat, 8% ffa, ddp North-West Europe, meanwhile, narrowed by €15 per tonne to €145 per tonne as soybean oil prices softened while poultry fat assessments remained unchanged at €1,000 per tonne.
Overall, the week’s movements were dominated by the sharp fall in gasoil prices and stronger crop-based feedstock values, resulting in significantly wider ROGO, POGO and BOGO spreads.
At the same time, biodiesel-feedstock margins were more mixed, with UCOME outperforming UCO while rising rapeoil prices squeezed crop-based biodiesel economics.
For those trading in the biofuels and feedstocks market, we capture pricing across the complex marketplace, including biodiesel, glycerin, renewable identification numbers (RINs), California’s Low-Carbon Fuel Standard (LCFS) credits and related certificate markets in Europe. Find out more.