Bullish Soybean Oil Price Helps Lift RIN Values

Biomass-based diesel has been moving at a solid pace all year, indications are that it may be beyond what is currently needed given the pandemic’s impact on the transportation sector, but time will sort that out.  RIN prices don’t seem to be rising in order to incentivize further production.  RINs appear to be working as they are theoretically designed.  They appear to be rising to offset the bean oil/heating oil (BOHO) spread that is at its highest level since April of 2016.

Feedstock (soybean oil) prices have been on a bull run this week, climbing 6.3 percent to 33.39 cents per pound.  Soybean oil price is at its highest level since January.  Heating oil values have held in a narrower range since mid-June, holding mostly between $1.13 to $1.25 per gallon.  Soybean oil prices are 17 percent higher than they were a year ago while heating oil…