US biodiesel prices jump amid logistics crimp

14 March 2013 19:55  [Source: ICIS news]

MEDELLIN, Colombia (ICIS) – North American soy methyl ester (SME) B100 and fatty acid methyl ester (FAME) biodiesel spreads were higher amid a logistics crunch, sources said on Thursday.

"Railcars are tied up all over the place and offers are higher because no one has the ability to deliver short term," a large trader said.

SME B100 bids/offers were at $4.82-4.92/gal free on board (FOB) Midwest, while FAME prices were at 4.68-4.78/gal, according to ICIS Pricing.

US chemical railcar traffic fell by 3.3% year on year to 29,196 loadings in the week that ended on 9 March, marking its fourth straight decline and its ninth so far this year, according to data released by a rail industry group.

From 1 January to 9 March, US chemical railcar traffic was down by 1.8% to 296,752 loadings, the Association of American Railroads (AAR) said.

The AAR's weekly logistics data are an important real-time measurement of chemical industry activity and demand. Railcar loadings represent about 20% of US chemical transportation by tonnage, with trucks, barges and pipelines carrying the rest.

Biodiesel is an alternative fuel, produced from renewable resources. The most commonly used feedstocks are rapeseed, soy and palm oil.

By: Leela Landress
+1 713 525 2653

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