Bulgarian producer to buy advanced biodiesel FOB ARA via Argus contract
In the UK, Bulgarian producer Astra initiated a deal to buy Advanced Fame 0 fob ARA range from Italian company Adamant on Argus Open Markets (AOM) on 28 May, the first transaction for this grade since its launch on the price-discovery platform. Advanced Fame 0 is a biodiesel made from feedstocks considered “advanced” under German regulations, excluding palm oil mill effluent (Pome) oil. An Argus-settled Advanced Fame 0 fob ARA range futures contract was launched on the Ice exchange last month and has also traded.
Advanced Fame 0 has traditionally traded as a differential to Ucome, which is made from used cooking oil. Both are made from wastes but have different regulatory regimes. As a result, the EU’s renewable fuel mandates have led to a growing divergence in supply-demand fundamentals for the different products and there has been a clear call for standalone pricing and hedging instruments.
Category: Fuels
