Finnish refiner and biodiesel producer Neste, said Friday FAME producers' margins rose in the third quarter after a rise in rapeseed oil prices in Europe supported FAME.
A lower European rapeseed crop, due to hot and dry weather over the summer, contributed to the higher RSO prices.
FAME producers' margins rebounded from being negative at the start of the year because of low biodiesel demand, especially in Germany.
Neste said that key impacts on performance in biofuels would be the price differentials between different vegetable oils and between vegetable and petroleum oils as well as biodiesel margins.
The overall picture given by Neste of the outlook for oil, renewable fuel and renewable feedstock markets was one of continued volatility which was expected to be compounded by "crude oil price changes, supply and demand balances, together with uncertainties related to political decision making on biofuel mandates."
Neste added that in the US, the Blender's Tax Credit, alongside other incentives would have a "further positive impact on Neste's comparable operating profit."
Neste said of biofuels in the EU, North American and other markets that their proliferation would be sped up by the implementation of legislation which would help demand for biofuels grow.
