Rising HOBO Spread Lifts Biodiesel RINs

Rising HOBO Spread Lifts Biodiesel RINs

 

 

Daily Charts 

 

Heating Oil and Soybean Oil Prices Diverge, Forcing BOHO Higher

Last week the market saw heating oil prices fall more than five percent to $1.15 per gallon, reaching a ten-week low.  Soybean oil prices also moved lower, slipping nearly two percent to 32.77.  This allowed the soybean oil/heating oil spread (BOHO) to push to its highest level since April of 2016.  As the BOHO spread moves higher, RINs generally tend to move with the spread in order to cover the increased cost of producing biodiesel.  Last week, this was reflected as biodiesel RIN values increased more than four percent.  The 2020 biodiesel RIN ended the week at 73.5 cents, while the 2021 RIN closed at 69 cents.

RIN prices continued higher on Monday as soybean oil and heating oil futures…

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