US biodiesel assessments plunged Monday to their lowest levels in at least two months on combined weakness from RINs prices and NYMEX ULSD futures.
Chicago SME biodiesel and US Gulf Coast SME biodiesel were both assessed 14.5 cents lower to $4.7685/gal and $4.8185/gal, respectively, amid ample supply, stagnant biomass-based diesel (D4) RINs prices and softening heating oil futures, sources said.
Chicago SME biodiesel was assessed at its lowest level since May 31 when it was at $4.7420/gal, while US Gulf Coast SME biodiesel dipped to levels not seen since June 26 when it was at $4.7545/gal.
The physical premiums for Chicago SME biodiesel and US Gulf Coast SME biodiesel were 10 cents lower at $1.65/gal and $1.70/gal and have dropped 25 cents month on month.
The Chicago SME biodiesel assessment has shed 37.85 since hitting a Platts record assessment high of $5.1470/gal on July 24, while the US Gulf Coast SME biodiesel assessment has fallen 42.85 cents from the July 24 record of $5.2470/gal.
NYMEX October ULSD futures settled down 4.54 cents at $3.1183/gal Monday, while current-year biodiesel RINs were assessed at $0.81/RIN, a 50-cent drop from the July 24 assessment.
NYMEX front-month ULSD futures, which have risen more than 12 cents from a month ago, have also contributed to a plunging "boho" factor, which is the relationship between feedstock soybean oil and blendstock heating oil that biodiesel producers use to calculate profit margins.
The "boho" factor has declined for four of the last five sessions and hit a 2013-low of 3.20 cents/gal on Friday before ticking up 50 points to 3.70 cents/gal on Monday.
