Is the growth in biodiesel production reaching a plateau?
November biodiesel production showed the lowest year-over-year increase of 2018 to date, with the month’s 159 million gallons up just 7 percent from November 2017. Cumulative 11-month production was up 16 percent from the year before. Manufacturers used 704 million pounds of soybean oil during November, nearly matching August’s record utilization, however, while canola oil use dropped sharply from a year ago and animal fat feedstocks saw modest declines.
Sales of B100 for use in blends totaled 91 million gallons in November, down 1 percent YOY and the first decline in annual growth since March 2017. November’s decline in B100 sales for blends does not mean December followed suit: Sales for blends tend to rise in December before dropping off in January. But it is possible that December’s production volume just held steady or declined a bit from November, and the industry may be pinched in 2019 if diesel prices remain weaker in 2019, as EIA is forecasting.
Major biodiesel feedstock utilization
Posted by: Information Services Our Information Services team assists our clients with understanding commodity and ingredient market dynamics. Using our extensive database of intelligence, we also produce regular commodity and commercial market publications covering supply and demand fundamentals, news alerts on events that shape the markets, and resource guides to give you a complete picture of the industries we monitor.