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LCFS trades again at tail end of a busy week

California LCFS credits traded at $80 for delivery in the first quarter of 2016 at the tail end of a busy week for volume. In total almost 40,000t of credits have changed hands this week, with a small Q4 traded at $80.50, and much larger sized Q1 traded at $80 showing a flat forward structure.  Friday’s bid and offer indications still hovered around $80 mid, with best bid indications sitting at $79. PRIMA’s LCFS Index finished Friday at $80, bringing the week’s average mid-market value to $79.08, virtually unchanged WoW. October’s month to date average for LCFS credits sits at $79.30.

The world’s largest renewable diesel production portfolio helped Finnish refiner Neste to a €12mn operating profit from the business segment in the third quarter, Neste said Friday, a marked improvement on the segment’s results in the first half and contributing 7.5% of overall operating profits for the latest quarter. Neste’s sales of renewable diesel NEXBTL hit 173mn gal in Q3. Of this, 58mn gal was destined for the US, up 40% YoY. Neste’s renewable diesel exports have surged into California this year hitting 67.96mn gal in the seven months until the end of July, compared to just 10mn gal shipped in 2014.

Wastes and residues supplied 75% of Neste’s renewable diesel feedstock over the past quarter. Slumping palm oil prices lowered input costs for Neste’s other main feedstock before a rebound in September as El Nino output fears gripped the market.

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