Biodiesel prices crashed in the US market backed by waning traditional demand
- 28-Jan-2022 2:15 PM
- Journalist: Nicholas Seifield
In the USA, Biodiesel prices have witnessed a downward trajectory backed by the lull traditional demand in the domestic market. Moreover, ample supplies of feedstock soybean and corn has also aided the pricing trend of Biodiesel in this timeframe. Thus, Biodiesel SME (Soy Methyl Ester) tumbled down to 1.61K USD/Ton on 27th January 2022.
Due to the ample productivity of feedstock Soybean in the USA, a fall in its prices has been observed in the last week that has also contributed to the plummeted pricing of Biodiesel. In this time, Biodiesel supply outpaces the demand that has eased its prices in the USA market.
Biodiesel is a renewable and biodegradable fuel that can be produced by vegetable oils such as soyabean oil, corn oil, castor oil, recycled cooking oil, etc., animal oils, or recycled restaurant grease for use in diesel vehicles or equipment’s that functions on diesel fuel. Its properties are similar to petroleum diesel. Blends of Biodiesel are like B100 containing 100% biodiesel, B20 having 20% biodiesel and 80% Petro diesel, B2 containing 2% biodiesel and 98% Petro diesel. SME Biodiesel refers to soy methyl ester mainly derived in America and FAME refers to Fatty acid methyl ester, European blends of biodiesel.
According To ChemAnalyst,Biodiesel futures are likely to attain some gains in the near term as the crude oil is rising vigorously so consumers may shift to biodiesel to meet their needs that would rise its overall demand and hence trigger the increase in its prices in the domestic as well as internationals market.