11.22.2024
Biodiesel margins rise, but window of opportunity limited
Biodiesel margins continued to rise during the week to Friday November 22. The bean oil/heating oil (BOHO) spread boosted margins by falling to its lowest level since August 27.
While it is unlikely that the Derecho winds in Iowa will lift organic corn prices, and organic soybean prices there might be some reason for concern for mid-western consumers. Iowa agricultural secretary Mike Naig said that approximately 40% of the state’s farmland was impacted by the Derecho winds. He said the hurricane-force winds (some up to 90-miles an hour) may have impacted roughly 10 million acres of Iowa farmland and destroyed million of bushels worth of grain storage. Iowa is the nation’s top corn producer and a top soybean producer, as well as the top organic corn producer.
The storm raced across the I-80 corridor and appears to have impacted the areas near Iowa city up to Cedar rapids moving west and east. The Jacobsen sees most of the organic corn crop in Iowa around Johnson county which was right in the thick of the storm-force winds. In the areas that were impacted approximately 2.5-million bushels of harvest forecast for the 2020/2021 harvest….