*Correction RFS: RIN Generation Mar '25 Highlights
Many readers have reached out regarding the RD estimated margins as reported in the March RFS Update, specifically using Canola Oil as a feedstock.
Imported UCO: -$0.15 to $0.40 per gallon
SBO: $0.25 to $0.75 per gallon
DCO: $0.35 to $0.90 per gallon
Tallow: $0.40 to $0.95 per gallon
Domestic UCO: $0.45 to $1.00 per gallon
Canola: $2.30 to $2.65 per gallon
Turns out the Canola price I was using is wrong. I took ‘ICE Canada Canola Oil’ price reported by Reuters in CAD/MT which using a USD conversion of 0.72/CAD is about $0.22/lb. The whole time I was thinking, “Wow, the Chinese tariffs really hit Canola oil prices hard” as SBO, UCO, Tallow prices have been in the range of $0.45/lb to $0.55/lb recently.
However if you check ICE, they only have Canola SEED prices FOB Saskatchewan, NOT CANOLA OIL.
You can back into a reasonable Canola Oil price of around $0.48/lb using the Canola Seed price, Canola board crush margin, and the Canola Meal price which puts it in line with SBO on a cost basis.
And it changes the range of estimated RD margin using Canola Oil.
Canola: $0.15 to $0.60 per gallon
The original post has been updated. I apologize for the confusion. And Reuters should too.