The rising vegetable oil complex has provided some support to biodiesel prices. European biodiesel prices have increased since the last Vesper’s report on 16/08/2023 (Fig. 1), as the European Commission announced the launch of an anti-circumvention investigation into suspected evasion of E.U. countervailing duties on Indonesian biodiesel imports. The decision was much welcomed by the EEB. Regarding trade activity, Vesper heard that there were no significant changes in the RME and UCOME markets.

Fig. 1: Vesper Spot Outright Biodiesel Prices (USD/mt)

  • The Vesper West EU Price Index for UCOME (22/08/2023) rose to €1.459,62 | $1.577,56 / mt (FOB, ARA contract) from €1.399,12 | $1,512.18 / mt same period last week
  • The Vesper West EU Price Index for RME (22/08/2023) rose to €1.209,99 | $1,307.49 / mt (FOB, ARA contract) from €1.152,83 | $1,245.73 / mt same period last week
  • The Vesper West EU Price Index for FAME 0 (23/08/2023) rose to €1.138,75 | $1.230,52 / mt (FOB, ARA contract) from €1.094,61 | $1.182,65 / mt same period last week


LSGO futures (Settle Sep 23) increased to $914.25 / mt (22/08/2023) from $883 / mt same period last week (Fig. 2). The key reason for the increase is slowing U.S. energy output. The latest statistics from the industry indicate that the U.S. oil and natural gas rig count, w­­hich serves as an early signal of future production, has decreased for the sixth consecutive week. This decline in U.S. production potential could worsen the expected supply constraints throughout the remainder of the year. “Concerns for investors remain focused on the tension between slowing global growth and still-tight global supplies,” said Rob Haworth, senior portfolio manager at U.S. Bank Asset Management. “Prices are likely to remain range-bound for now,” Haworth said, adding that demand is in question for investors worried by the weak data from China.

TIP: Explore quick calculations for biodiesel blend rate (BBR) and beyond, courtesy of our complimentary oils and fats calculators.

Fig. 2: Historical Settle Per Contract graph for ICE (EU) LS Gas Oil – Sep ’23 contract (USD/mt)

Read more Biodiesel Highlights on Vesper.