LC Biofuels jots a note on biodiesel price increases

LC Biofuels is trying to explain why its biodiesel is not getting any cheaper. According to the Biodiesel Blog, the company has sent out a letter that describes how the ever-increasing price of raw materials and diesel fuel seriously impact its biodiesel prices. The weak dollar - which makes it more lucrative for soybean producers to sell their product to China - also plays a role.
Feedstock prices are set, mostly, by the Chicago Board of Trade, the letter says, and because soybean prices have tripled over the past year, the price that LC Biofuels has to sell a gallon of biodiesel for to make money has climbed to about $6.25. Other biodiesel plants have stopped production (see here), but LC Biofuels is going to keep on trying to make fuel for the time being. Prices will be higher, but when costs come down - if costs come down - the pump will reflect the drop.

[Source: Biodiesel Blog]

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