Friendly reminder that an increase in capacity is not bullish if the mandate doesn’t expand in kind #soybeans
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Tom Kloza
@TomKloza
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1h
Solid quarter for Valero Energy but the bloom for renewable diesel is rapidly fading. Net profit for the new fuel was 24cts/gal in 4Q2023 compared with $1.16/gal in 4Q2022. There's been further deterioration in margins since 2023 ended.
When there is no real value added to the fuel chain, this is correct. Please remember, ethanol adds big value because of octane alone. Hence, the little change in demand despite big swings in prices.
Renewable Diesel
