Rising vegetable oil demand may offset bad biofuel news

demand and prices. European Union production is forecast to fall to 14.8 million tonnes from 15.5 million tonnes last year. “Not only is European biodiesel production forecast down this year, but European canola production itself is up due to favourable weather,” he said in a recent Agri Commodity Weekly Alert report. The European Commission is forecasting 19.92 million tonnes of rapeseed production, which would be 12 percent above the five-year average. U.S. production of biodiesel/renewable diesel is forecast at 14.2 million tonnes, down from 16 million tonnes last year. “Poor profit margins for biofuel producers have curbed production,” said Voznesenski. RIN values are down 47 per cent from last year. They are government credits that biofuel producers receive for producing a unit of biofuel. Western Producer Markets Desk analyst Bruce Burnett thinks it might be premature to be forecasting a drop in U.S. biofuel production. The U.S. Environmental Protection Agency was poised to ...